Revenue Performance - Revenue increased by approximately 51.7% from about HKD 15.0 million for the six months ended June 30, 2024, to about HKD 22.8 million for the same period in 2025, primarily due to improved performance in the design and renovation business[16]. - The design and renovation business accounted for 100% of the total revenue of HKD 22.8 million in 2025, with no revenue generated from the financial investment business[18]. - Revenue increased from approximately HKD 15.0 million for the six months ended June 30, 2024, to approximately HKD 22.8 million for the same period in 2025, representing a growth of about 51.7%[32]. - The group reported a total revenue of HKD 22,825,000 for the six months ended June 30, 2025, representing a 51.8% increase from HKD 15,046,000 in the same period of 2024[139]. - Revenue from design and decoration services was HKD 21,262,000, up from HKD 14,250,000, indicating a growth of 49.1%[139]. Financial Performance - The loss for the six months ended June 30, 2025, was approximately HKD 15.8 million, compared to a loss of about HKD 5.3 million for the same period in 2024[22]. - The company incurred a loss of HKD 15,777,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,256,000 for the same period in 2024, indicating a challenging financial environment[151]. - The company reported a net loss attributable to shareholders of HKD 15,612,000 for the period, compared to HKD 5,879,000 in the previous year[112]. - Operating loss for the period was HKD 8,951,000, up from HKD 3,919,000 in the previous year, reflecting a deterioration in operational performance[112]. - The company recorded a total comprehensive loss of HKD 15,089,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,724,000 for the same period in 2024[124]. Cost and Expenses - Sales and service costs increased by approximately 87.0% to about HKD 17.1 million for the six months ended June 30, 2025, compared to the same period in 2024[20]. - Selling and administrative expenses rose to approximately HKD 17.6 million in the six months ended June 30, 2025, up from HKD 13.7 million in 2024, mainly due to increased legal, professional, and marketing expenses[21]. - Financial costs surged to HKD 7,036,000 from HKD 1,287,000, highlighting increased borrowing expenses[112]. - The company’s total operating expenses increased to HKD 8,611,000 for the six months ended June 30, 2025, from HKD 4,888,000 in the same period of 2024, marking a rise of 76.5%[177]. Assets and Liabilities - The company's cash and cash equivalents decreased to approximately HKD 25.9 million as of June 30, 2025, down about 51.7% from HKD 53.6 million as of December 31, 2024[29]. - The debt-to-asset ratio increased to approximately 111.1% as of June 30, 2025, compared to 83.9% as of December 31, 2024, primarily due to increases in borrowings and convertible bonds[30]. - Total assets as of June 30, 2025, amounted to HKD 110,761,000, compared to HKD 89,797,000 at the end of 2024, showing growth in asset base[116]. - The total liabilities increased to HKD 148,665,000 as of June 30, 2025, compared to HKD 110,887,000 as of December 31, 2024[153]. Investment Activities - The financial investment business aims to seek opportunities for capital appreciation and cash flow returns in the Hong Kong stock market and overseas derivative markets[13]. - The group holds approximately HKD 58 million in equity investments, with notable holdings including HSBC Holdings Limited and China Ping An Insurance[53]. - The largest equity investment is in CK Hutchison Holdings Limited (00001.hk) with a fair value of HKD 815 million, representing 21.0% of total investments[56]. - The group reported a loss of HKD 270 million from BYD Company Limited (01211.hk), which represents a 3.0% stake in the company[56]. Future Outlook and Strategies - The management remains optimistic about the long-term prospects of the design and renovation business despite economic uncertainties[10]. - The company plans to continue seeking new orders and clients to strengthen its customer base in the design and renovation sector[14]. - The board is optimistic about the prospects of the financial investment business, which was established for the year ending December 31, 2023, and believes it will enhance financial performance and shareholder value[10]. - The company will actively monitor its performance and implement appropriate strategies in response to economic conditions[14]. Employee and Operational Metrics - The group has approximately 38 employees as of June 30, 2025, down from 39 employees as of December 31, 2024[52]. - The company is implementing various measures to enhance its overall sales network and effective cost control to improve profit margins and operating cash flow[129]. Dividends and Shareholder Returns - The company did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous year[44]. - The company received approximately HKD 379,000 in dividends during the reporting period[73].

Financial Performance - Total revenue and other income for the reporting period reached RMB 16,501,636, an increase of 25.77% compared to RMB 15,899,662 in the same period last year [21]. - Profit before tax was RMB 5,985,429, reflecting a significant increase of 78.16% from RMB 3,359,549 in the previous year [21]. - Net profit attributable to shareholders was RMB 4,284,169, representing a growth of 101.32% compared to RMB 2,128,072 in the same period last year [21]. - Basic earnings per share increased to RMB 0.17, up 112.50% from RMB 0.08 in the previous year [21]. - The company achieved total revenue and other income of RMB 16,502 million, an increase of RMB 3,381 million, or 25.77% year-on-year [186]. - The net investment income for the same period was RMB 7,297 million, reflecting a significant increase of RMB 2,444 million, or 50.35% year-on-year [186]. Dividend Distribution - The company reported a total cash dividend distribution of RMB 876,398,059.60, with a cash dividend of RMB 0.35 per 10 shares for A and H shareholders [7]. - The company plans to consider the interim profit distribution amount when formulating the 2025 annual profit distribution plan [5]. - The company will maintain the total distribution amount unchanged if there are changes in total share capital before the implementation of the rights distribution [5]. Financial Position - Total assets at the end of the reporting period were RMB 682,052,615, a decrease of 2.23% from RMB 697,596,593 at the end of the previous year [24]. - Total liabilities decreased by 3.33% to RMB 545,432,290 from RMB 564,247,667 at the end of the previous year [24]. - Total equity attributable to shareholders increased by 3.52% to RMB 108,473,771 from RMB 104,784,097 at the end of the previous year [24]. - The company's asset-liability ratio improved to 75.61%, a decrease of 1.20 percentage points from 76.81% at the end of the previous year [24]. - Cash and cash equivalents as of June 30, 2025, amounted to RMB 53,860 million, up RMB 6,239 million from RMB 47,621 million on June 30, 2024 [188]. Risk Management - The company has detailed potential market risks, credit risks, liquidity risks, operational risks, policy risks, legal compliance risks, innovation business risks, reputation risks, and exchange rate risks in the interim report [7]. - The board of directors confirmed that the interim report content is true, accurate, and complete, with no false records or major omissions [7]. - The company emphasizes that forward-looking statements in the interim report do not constitute substantive commitments to investors [7]. Business Segments - The company's business segments include corporate finance, personal finance, institutional services, and investment management, providing a comprehensive financial service chain [89]. - Corporate finance consists of investment banking services such as equity and debt underwriting, and financial advisory [41]. - Personal finance services cover a wide range of needs for individual and non-professional institutional investors, including securities brokerage and financial product sales [42]. - Institutional services include providing prime brokerage and research consulting for professional institutional clients [43]. - Investment management encompasses asset management, public fund management, and private fund management services [44]. Market Trends and Strategies - The securities industry showed strong resilience and development potential in the first half of 2025, supported by government policies [32]. - The industry is experiencing accelerated mergers and acquisitions, leading to a differentiated competitive landscape [34]. - The company is committed to serving the real economy and aligning with national strategies, enhancing its financial service capabilities [36]. - The company is focused on sustainable development and optimizing asset allocation to enhance business collaboration [37]. Operational Efficiency - The company plans to continue focusing on cost management and operational efficiency to enhance profitability in the upcoming quarters [188]. - The company aims to enhance its core competitiveness in asset management by improving research and investment systems and optimizing product planning in the second half of 2025 [175]. - The company aims to deepen its product, business, research, and service upgrades in the second half of 2025, enhancing its institutional business's professional and intelligent service levels [149]. Client Engagement and Services - The average monthly active users of the company's mobile trading platform reached 4.77 million, showing a steady increase in user engagement [120]. - The company has served over 100 listed companies in share repurchase and provided employee incentive services to 70 listed companies, benefiting over 19,000 individuals [147]. - The company's personal financial services segment achieved total revenue of RMB 5,752 million, representing a year-on-year growth of 14.35% [117]. Future Outlook - The company plans to enhance its investment support in technology, inclusive finance, green initiatives, elderly care, and digital sectors in the second half of 2025 [116]. - The company aims to strengthen its market competitiveness and ensure steady growth in operating performance [39]. - The company plans to continue expanding its brand influence and research capabilities in the second half of 2025, focusing on integrated research across A-shares, Hong Kong stocks, and U.S. stocks [153].

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 PROSPERITY INVESTMENT HOLDINGS LIMITED ...

Revenue and Business Segments - The revenue of Basic House New Life Group Limited primarily comes from two business segments: design and renovation services, and financial investment activities[15]. - The design and renovation business was established in 1999 and is based on extensive experience in interior design and project management[16]. - The financial investment business was launched for the year ending December 31, 2023, focusing on equity securities listed in Hong Kong and derivative instruments[17]. - Management remains optimistic about the long-term prospects of the design and renovation business despite economic uncertainties[18]. - The board is optimistic about the outlook for the Hong Kong equity securities market and believes the new financial investment business will enhance financial performance and shareholder value[18]. - Revenue for the six months ended June 30, 2025, was HKD 22,825,000, an increase of 51.8% compared to HKD 15,046,000 for the same period in 2024[120]. - Revenue from design and decoration services was HKD 21,262,000, up from HKD 14,250,000, indicating a growth of 49.2%[147]. - Revenue from maintenance and after-sales services decreased slightly to HKD 736,000 from HKD 796,000, a decline of 7.5%[147]. - For the six months ended June 30, 2025, total revenue was HKD 22,825,000, with design and renovation contributing HKD 21,998,000 and other segments contributing HKD 827,000[152]. Financial Performance - The company's revenue increased from approximately HKD 15.0 million for the six months ended June 30, 2024, to approximately HKD 22.8 million for the same period in 2025, representing an increase of about 51.7% due to improved performance in the design and renovation business[24]. - The loss for the six months ended June 30, 2025, was approximately HKD 15.8 million, compared to a loss of approximately HKD 5.3 million for the same period in 2024[30]. - Operating loss for the six months ended June 30, 2025, was HKD 8,951,000, compared to an operating loss of HKD 3,919,000 in 2024, representing a 128.5% increase in losses[120]. - Net loss for the period was HKD 15,777,000, significantly higher than the net loss of HKD 5,256,000 in the previous year, indicating a 199.5% increase in losses[120]. - Basic loss per share for the six months ended June 30, 2025, was HKD (4.33), compared to HKD (1.63) for the same period in 2024[121]. - The group reported a loss before tax of HKD 15,773,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,256,000 for the same period in 2024[159]. - The company reported a loss attributable to shareholders of HKD 15,612,000 for the six months ending June 30, 2025, compared to a loss of HKD 5,879,000 for the same period in 2024[186]. Assets and Liabilities - As of June 30, 2025, the company's cash and cash equivalents amounted to approximately HKD 25.9 million, a decrease of about 51.7% from HKD 53.6 million as of December 31, 2024[32]. - The debt-to-asset ratio as of June 30, 2025, was approximately 111.1%, up from 83.9% as of December 31, 2024, primarily due to increases in borrowings and convertible bonds[33]. - Total assets as of June 30, 2025, amounted to HKD 110,761,000, an increase from HKD 89,797,000 as of December 31, 2024[124]. - Total liabilities increased to HKD 72,295,000 as of June 30, 2025, from HKD 52,557,000 as of December 31, 2024, reflecting an increase of about 37.5%[128]. - The company reported a total equity of HKD (25,385,000) as of June 30, 2025, a decline from HKD (10,720,000) as of December 31, 2024, reflecting a decrease of approximately 136.5%[129]. - The group reported total liabilities as of June 30, 2025, were HKD 148,665,000, up from HKD 110,887,000 as of December 31, 2024[161]. Financial Investments - The company has initiated financial investment operations as of December 31, 2023, and management remains optimistic about the prospects of the Hong Kong equity securities market and derivative markets[22]. - The financial investment segment generated a profit of HKD 1,926,000, while the design and renovation segment incurred a loss of HKD 1,265,000 for the six months ended June 30, 2025[152]. - The financial investment segment's assets increased significantly to HKD 57,833,000 as of June 30, 2025, compared to HKD 14,000,000 as of December 31, 2024[160]. - The group held approximately HKD 58 million in equity investments as of June 30, 2025, classified as financial assets measured at fair value through other comprehensive income and profit or loss[61]. - The total market value of the group's investments in the listed companies was approximately HKD 58 million[61]. Operational Strategies and Future Outlook - The company will continue to seek new orders and clients in the design and renovation business despite economic uncertainties, maintaining a long-term optimistic outlook[22]. - The company is implementing various measures to enhance its overall sales network and effective cost control to improve profit margins and operating cash flow[137]. - The company plans to seek additional financing methods and bank loans to meet its existing financial obligations and future operational and capital expenditures[138]. - The company has received financial support commitments from major shareholders to ensure it can meet its financial responsibilities in the foreseeable future[144]. - The group continues to operate under the basis of going concern despite the recorded net liabilities, supported by shareholder commitments and operational strategies[139]. Employee and Administrative Costs - The group has approximately 38 employees as of June 30, 2025, down from 39 employees as of December 31, 2024[60]. - The sales and administrative expenses for the six months ended June 30, 2025, were approximately HKD 17.6 million, an increase of about HKD 3.9 million from HKD 13.7 million in 2024, primarily due to increased legal, professional, and marketing expenses[29]. - The group offers competitive compensation and various internal training programs to attract and retain high-quality employees[60]. Dividends and Other Income - The board has not declared any interim dividend for the six months ended June 30, 2025, consistent with the previous year[56]. - The group reported other income of HKD 827,000 for the first time, contributing to the overall revenue[147]. - The group received approximately HKD 379,000 in dividends from HSBC Holdings during the period[81]. - The group received approximately HKD 66,000 in dividends from BYD Company during the period[85]. - The group received approximately HKD 30,000 in dividends from China Evergrande Group during the period[86]. - The group received approximately HKD 92,000 in dividends from SF REIT Asset Management Limited during the period[70].

Part I [Company Overview](index=1&type=section&id=I.%20Company%20Overview) This section provides a high-level overview of the company's financial performance, strategic direction, and core competencies [Financial Summary](index=1&type=section&id=1.1%20Financial%20Summary) The company reported a **18.8% year-on-year revenue decrease** to **RMB 101.3 million** and a **loss of RMB 121.5 million** for the six months ended June 30, 2025 Financial Performance (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 101,338 | 124,739 | -18.8% | | Cost of Sales | (48,147) | (66,861) | -28.1% | | Gross Profit | 53,191 | 57,878 | -8.1% | | Loss from Operations | (115,846) | (117,643) | -1.5% | | Loss Before Tax | (123,023) | (121,327) | +1.4% | | Loss for the Period | (121,493) | (119,915) | +1.3% | Financial Position (Period End) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 702,030 | 690,039 | +1.7% | | Current Assets | 864,995 | 979,242 | -11.7% | | Non-current Liabilities | 336,862 | 332,782 | +1.2% | | Current Liabilities | 198,487 | 194,684 | +2.0% | | Net Assets | 1,031,676 | 1,141,815 | -9.6% | | Total Equity Attributable to Owners of the Company | 1,032,946 | 1,143,066 | -9.6% | [Company Profile and Strategy](index=2&type=section&id=1.2%20Company%20Profile%20and%20Strategy) The company is a leading Chinese assisted reproduction medical device supplier, offering automated, intelligent full-chain solutions and pursuing global expansion through a multi-faceted strategy - The company's mission is to help more families have healthy children, and its vision is to become a global leading medical technology company[5](index=5&type=chunk) - A full-chain solution covering genetic testing, andrology diagnosis, cryopreservation, embryo culture, and intelligent management has been established[5](index=5&type=chunk) - The company relies on three major strategies: "full-chain platform + international brand influence + AI intelligent upgrade" to consolidate its market position in China and expand globally[7](index=7&type=chunk) [Mission, Vision, and Core Competencies](index=2&type=section&id=1.2.1%20Mission,%20Vision,%20and%20Core%20Competencies) The company aims to enhance fertility technology quality through innovative, automated assisted reproduction products, aspiring to be a global leader in medical technology - The company is committed to enabling medical institutions and patients to use automated, standardized, and intelligent assisted reproduction products, ensuring stable and high-quality fertility technology[5](index=5&type=chunk) - The mission is to help more families have healthy children, and the vision is to become a global leading medical technology company[5](index=5&type=chunk) [Full-Chain Solutions](index=2&type=section&id=1.2.2%20Full-Chain%20Solutions) The company offers comprehensive assisted reproduction solutions, from genetic testing to intelligent management, enhanced by localized, internationally acquired embryo culture technologies - The PGT-A reagent kit obtained China's first "National Innovative Medical Device Special Approval" Class III medical device registration certificate[5](index=5&type=chunk) - The BKA-210 intelligent sperm quality analyzer and BKP200 portable sperm quality analyzer were launched, enhancing andrology diagnostic efficiency and widespread application[5](index=5&type=chunk) - The BCT38 intelligent liquid nitrogen tank is the first NMPA-approved and CE-certified product in China, and the SG800 ultra-low temperature storage system has a single unit capacity of 30,000-50,000 tubes[6](index=6&type=chunk) - Through the acquisition of Singapore BMX, the company obtained the Geri® time-lapse embryo incubator and Gems® embryo culture media, with the Geri® time-lapse incubator receiving its Class II medical device registration certificate in July 2025, achieving import substitution[6](index=6&type=chunk) [Overseas Markets and AI Applications](index=3&type=section&id=1.2.3%20Overseas%20Markets%20and%20AI%20Applications) The company leverages AI with its iARMS system for intelligent lab management and has established a global sales network with international product certifications - The iARMS intelligent management system was launched, utilizing AI and IoT technologies for structured medical records, intelligent scheduling, real-time quality control, and auxiliary decision-making[7](index=7&type=chunk) - A sales and service network covering multiple countries and regions has been established, with products obtaining FDA, CE, TGA, and other authoritative certifications[7](index=7&type=chunk) Part II [Product Portfolio and R&D Progress](index=3&type=section&id=II.%20Product%20Portfolio%20and%20R%26D%20Progress) This section details the company's diverse product offerings across various laboratory segments and highlights key research and development achievements [Genetic Laboratory Products](index=3&type=section&id=2.1%20Genetic%20Laboratory%20Products) The genetic lab offers PGT-A kits and high-throughput gene sequencers, with PGT-A being China's first approved product, significantly improving pregnancy outcomes - The PGT-A reagent kit can increase clinical pregnancy rates to **72%** and reduce miscarriage rates to **6.9%**[8](index=8&type=chunk) - The localized high-throughput gene sequencer DA500 obtained its Class III medical device registration certificate in September 2023, and the DA5000 obtained its Class III medical device registration certificate in September 2024, with the DA5000's throughput increasing by over **4 times**[9](index=9&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The PGT-A reagent kit obtained its first "National Innovative Medical Device Special Approval" Class III medical device registration certificate in February 2020 and was approved for renewal until February 20, 2030, in October 2024[9](index=9&type=chunk) [Andrology Laboratory Products](index=4&type=section&id=2.2%20Andrology%20Laboratory%20Products) The andrology lab addresses male infertility with the BKA-210 intelligent sperm analyzer, offering precise live sperm detection, and the portable BKP200 for home use - Chinese male sperm count has decreased by **75%** in the past 40 years, with male factors contributing to nearly **40%** of infertility cases[10](index=10&type=chunk) - The new-generation intelligent sperm quality analyzer, through microfluidics, microscopic imaging, and AI big data models, achieved the world's first precise detection of live sperm concentration, motility, and morphology[10](index=10&type=chunk) - The portable sperm quality analyzer BKP200 obtained its Class II medical device registration certificate in April 2025, extending professional-grade testing to home settings[15](index=15&type=chunk)[33](index=33&type=chunk) [Cryopreservation Laboratory Products](index=5&type=section&id=2.3%20Cryopreservation%20Laboratory%20Products) The cryopreservation lab offers fertility preservation solutions, including China's first certified intelligent liquid nitrogen tank and a global-first automated ultra-low temperature embryo storage device - China is expected to have **10 million** new embryos requiring cryopreservation annually, indicating immense demand[12](index=12&type=chunk) - The intelligent liquid nitrogen tank is the first certified ultra-low temperature storage product in China, enabling real-time fertility preservation and location tracking[12](index=12&type=chunk) - The company has developed the world's first automated ultra-low temperature intelligent embryo storage device capable of storing **30,000-50,000** gametes[12](index=12&type=chunk) [Embryo Laboratory Products](index=5&type=section&id=2.4%20Embryo%20Laboratory%20Products) The embryo lab provides Geri® time-lapse incubators and Gems® culture media, with the Geri® incubator achieving localization in July 2025, reducing costs by over 30% - The Geri® time-lapse incubator features **6** independent chambers, enabling stable embryo culture and real-time monitoring[11](index=11&type=chunk) - The Geri® time-lapse embryo incubator and Gems® embryo culture media were acquired through the acquisition of Singapore BMX[6](index=6&type=chunk) - The Geri® time-lapse incubator obtained its Class II medical device registration certificate in July 2025, marking its successful transition from import to domestic production, with costs reduced by over **30%**[6](index=6&type=chunk)[29](index=29&type=chunk) [Software Laboratory Products](index=6&type=section&id=2.5%20Software%20Laboratory%20Products) The software lab's iARMS intelligent management system integrates AI and IoT to connect lab data across the reproductive cycle, enhancing efficiency and pregnancy success - iARMS (Intelligent Assisted Reproductive Medical Record Management System) provides a new generation of "AI + Internet of Things (IoT)" information solutions[13](index=13&type=chunk) - The system enables data interconnection across major laboratory scenarios, improving the reproductive center's work efficiency, operational safety, and pregnancy success rates[13](index=13&type=chunk) - iARMS breaks traditional information silos, ensures modularity and interconnection of laboratory modules, and incorporates an IoT sample verification system to safeguard sample information security[13](index=13&type=chunk) [Research and Development Activities](index=17&type=section&id=2.6%20Research%20and%20Development%20Activities) R&D saw significant progress with the portable sperm analyzer and Geri® incubator receiving registration, the latter achieving localization and **over 30% cost reduction** - In April 2025, the portable sperm quality analyzer obtained its Class II medical device registration certificate[36](index=36&type=chunk) - In July 2025, the Geri® time-lapse incubator obtained its Class II medical device registration certificate, achieving "import to domestic production" with costs reduced by over **30%**[37](index=37&type=chunk) - In August 2025, the first product in the Gems embryo culture media series (VitBase Embryo Processing Solution) obtained its Class III medical device registration certificate, laying the foundation for subsequent full-line localization[37](index=37&type=chunk) [Intellectual Property](index=18&type=section&id=2.7%20Intellectual%20Property) As of June 30, 2025, the company holds **149 registered patents** and **133 trademarks** in China, alongside other IP, showcasing a robust portfolio - As of June 30, 2025, the company has registered **149 patents**, **133 trademarks**, **59 software copyrights**, and **16 domain names** in China[38](index=38&type=chunk) - Additionally, **9** trademarks were registered in Hong Kong and **5** in Taiwan, with **67** patent applications filed[38](index=38&type=chunk) Part III [Commercialization and Market Strategy](index=18&type=section&id=III.%20Commercialization%20and%20Market%20Strategy) This section outlines the company's strategies for expanding its sales network, fostering strategic partnerships, and pursuing international market penetration [Sales Network and Customer Expansion](index=18&type=section&id=3.1%20Sales%20Network%20and%20Customer%20Expansion) The company has established a global sales network across EMEA, APAC, and North America, with **over 170 sales personnel** and **88 distributors** serving **over 1,000 clinical institutions** - A global sales network covering Europe-Middle East-Africa (EMEA), Asia-Pacific (APAC), and North America has been established[39](index=39&type=chunk) - As of June 30, 2025, the company has over **170** sales personnel globally, collaborating with over **48** distributors in mainland China and **40** distributors in other global regions, serving over **1,000** clinical institutions[39](index=39&type=chunk) [Strategic Partnerships](index=19&type=section&id=3.2%20Strategic%20Partnerships) The company has forged strategic partnerships with Rhea Labs and IVI RMA Global to advance brand building, AI product development, and expand into various assisted reproduction solutions - In February 2025, a strategic cooperation agreement was signed with Rhea Labs Pte. Ltd. to jointly promote brand building and AI new product development in specific regions[40](index=40&type=chunk) - In March 2025, cooperation was expanded with global leading reproductive medical group IVI RMA Global, extending to PGT equipment and reagents, andrology AI detection, automated ultra-low temperature storage, and full laboratory process management systems[40](index=40&type=chunk) [Internationalization Strategy](index=19&type=section&id=3.3%20Internationalization%20Strategy) Internationalization is a core strategy, with core products rapidly penetrating global high-end markets, supported by ongoing CE and FDA certifications for compliance - Going global is an unshakeable strategic core for the company, and an important path to break through industry competition and define future standards[41](index=41&type=chunk) - Core products have fully initiated penetration into high-end markets in Europe, the Middle East, Asia-Pacific, and the Americas, while simultaneously launching CE, FDA, and other international certifications to promote global product compliance and market access[41](index=41&type=chunk) Part IV [Business Strategy](index=20&type=section&id=IV.%20Business%20Strategy) This section outlines the company's overarching business strategies, focusing on building a comprehensive assisted reproduction platform, leveraging brand influence, and integrating AI for intelligent upgrades [Building a Full-Chain Assisted Reproduction Platform](index=20&type=section&id=4.1%20Building%20a%20Full-Chain%20Assisted%20Reproduction%20Platform) The company is building a "pyramid-shaped" full-chain assisted reproduction platform, integrating advanced technologies, core products, foundational support, and a software ecosystem for global expansion - The company has established a "pyramid-shaped" full-chain layout, becoming one of the few global enterprises with full-chain capabilities[44](index=44&type=chunk) - The high-end technology layer, represented by PGT-A, is the first approved product of its kind in China, creating a first-mover advantage[44](index=44&type=chunk) - The foundational support layer involves acquiring Geri® time-lapse incubators and Gems® culture media through the acquisition of Genea Biomedx, achieving Geri® incubator localization registration, and accelerating Gems® culture media localization[44](index=44&type=chunk) - The software ecosystem, through the iARMS intelligent assisted reproduction management system, enables comprehensive hardware device access and cross-laboratory data integration[45](index=45&type=chunk) [Leveraging Brand Value and International Influence for Performance Growth](index=21&type=section&id=4.2%20Leveraging%20Brand%20Value%20and%20International%20Influence%20for%20Performance%20Growth) The company leverages its "professional, innovative, international" brand to expand performance, with products in **over 70% of leading domestic centers** and a global network via acquisitions and partnerships - The company's products have entered over **70%** of leading reproductive centers and established demonstration projects through strategic partnerships[46](index=46&type=chunk) - A sales and service network covering over **20** countries and **600** reproductive centers was established through the acquisition of Genea Biomedx[46](index=46&type=chunk) - Strategic collaborations have been formed with global leading reproductive institutions such as IVIRMA (Spain) and Rhea Labs (Singapore) to jointly develop intelligent IVF clinics[46](index=46&type=chunk) [Empowering Intelligent Upgrades with AI](index=21&type=section&id=4.3%20Empowering%20Intelligent%20Upgrades%20with%20AI) AI is central to the company's strategy, driving "AI-led intelligent assisted reproduction" by integrating hardware data with the iARMS system for comprehensive AI analysis and decision-making - AI is becoming the core engine for the company's strategic upgrade, proposing "AI-led intelligent assisted reproduction"[47](index=47&type=chunk) - With the iARMS intelligent management system as the hub, dispersed clinical data is connected into a complete closed loop, becoming a data asset that drives industry intelligent upgrades[47](index=47&type=chunk) - The Geri® time-lapse incubator's accompanying EEVA® embryo assessment system, as the world's first FDA-certified AI analysis software, can improve the efficiency of selecting high-quality embryos by approximately **40%**[48](index=48&type=chunk) - The company's vision is to become the world's first "AI + Reproduction" platform enterprise, redefining the technical boundaries of assisted reproduction through an AI-led intelligent reproductive ecosystem[49](index=49&type=chunk) Part V [Financial Performance](index=23&type=section&id=V.%20Financial%20Performance) This section presents the company's detailed financial statements, including the comprehensive income statement, comprehensive income and other comprehensive income statement, and statement of financial position [Consolidated Statement of Profit or Loss](index=23&type=section&id=5.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue decreased by **18.8% to RMB 101.3 million**, gross profit declined by **8.1%**, and the loss for the period widened slightly to **RMB 121.5 million** Consolidated Statement of Profit or Loss (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 101,338 | 124,739 | | Cost of Sales | (48,147) | (66,861) | | Gross Profit | 53,191 | 57,878 | | Net Other Income | 14,938 | 25,207 | | Selling and Distribution Expenses | (52,862) | (50,658) | | Administrative Expenses | (74,212) | (80,380) | | Research and Development Expenses | (56,812) | (69,639) | | Loss from Operations | (115,846) | (117,643) | | Loss Before Tax | (123,023) | (121,327) | | Loss for the Period | (121,493) | (119,915) | | Basic and Diluted Loss Per Share (RMB) | (0.4) | (0.4) | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=5.2%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a **loss of RMB 121.5 million**, with positive exchange differences from overseas subsidiaries narrowing the total comprehensive loss to **RMB 110.1 million** Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (121,493) | (119,915) | | Exchange Differences on Financial Statements of Overseas Subsidiaries | 11,357 | (5,557) | | Other Comprehensive Income for the Period | 11,357 | (5,557) | | Total Comprehensive Loss for the Period | (110,136) | (125,472) | [Consolidated Statement of Financial Position](index=25&type=section&id=5.3%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets slightly increased, while current assets decreased by **11.7% to RMB 865.0 million**, leading to a decline in net assets and total equity Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 702,030 | 690,039 | | Current Assets | 864,995 | 979,242 | | Current Liabilities | 198,487 | 194,684 | | Non-current Liabilities | 336,862 | 332,782 | | Net Assets | 1,031,676 | 1,141,815 | | Total Equity | 1,031,676 | 1,141,815 | Part VI [Financial Review and Analysis](index=37&type=section&id=VI.%20Financial%20Review%20and%20Analysis) This section provides a detailed analysis of the company's financial performance, including revenue, costs, expenses, and key balance sheet items [Revenue and Cost of Sales](index=37&type=section&id=6.1%20Revenue%20and%20Cost%20of%20Sales) Revenue decreased by **18.8% to RMB 101.3 million**, and cost of sales decreased by **28.1% to RMB 48.1 million**, reflecting industry slowdown and strategic project adjustments - Revenue decreased by **18.8%** from RMB 124.7 million in the same period of 2024 to **RMB 101.3 million** in 2025, primarily due to industry slowdown and proactive reduction of less profitable projects[85](index=85&type=chunk) - Cost of sales decreased by **28.1%** from RMB 66.9 million in the same period of 2024 to **RMB 48.1 million** in 2025, mainly in line with the decrease in revenue[86](index=86&type=chunk) [Gross Profit and Gross Margin](index=37&type=section&id=6.2%20Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **8.1% to RMB 53.2 million**, while gross margin improved from **46.4% to 52.5%** due to process optimization and cost control - Gross profit decreased by **8.1%** from RMB 57.9 million in the same period of 2024 to **RMB 53.2 million** in 2025[87](index=87&type=chunk) - The overall gross margin increased from **46.4%** in the same period of 2024 to **52.5%** in 2025, primarily due to optimized processes, controlled material prices, and the reduction of less profitable projects[87](index=87&type=chunk) [Net Other Income](index=37&type=section&id=6.3%20Net%20Other%20Income) Net other income decreased by **40.9% to RMB 14.9 million**, mainly due to reduced exchange gains and lower bank deposit interest income - Net other income decreased by **40.9%** from RMB 25.2 million in the same period of 2024 to **RMB 14.9 million** in 2025[88](index=88&type=chunk) - The decrease was primarily due to reduced exchange gains from currency fluctuations and lower bank deposit interest income[88](index=88&type=chunk) [Selling and Distribution Expenses](index=38&type=section&id=6.4%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **4.3% to RMB 52.9 million**, driven by international sales network development and new product marketing - Selling and distribution expenses increased by **4.3%** from RMB 50.7 million in the same period of 2024 to **RMB 52.9 million** in 2025[89](index=89&type=chunk) - The increase was primarily due to the establishment of international sales regions and increased marketing activities for new product sales[89](index=89&type=chunk) [Administrative Expenses](index=38&type=section&id=6.5%20Administrative%20Expenses) Administrative expenses decreased by **7.7% to RMB 74.2 million**, attributed to optimized management structure and enhanced resource integration - Administrative expenses decreased by **7.7%** from RMB 80.4 million in the same period of 2024 to **RMB 74.2 million** in 2025[90](index=90&type=chunk) - The decrease was primarily due to optimized management structure and domestic and international synergy, leading to effective resource integration[90](index=90&type=chunk) [Research and Development Expenses](index=38&type=section&id=6.6%20Research%20and%20Development%20Expenses) R&D expenses decreased by **18.4% to RMB 56.8 million**, as several products achieved registration and commercialization Research and Development Expenses (RMB thousands) | Component | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Staff Costs | 27,276 | 34,077 | | Clinical Trial Expenses | 22,768 | 19,603 | | Consumables Expenses | 3,330 | 8,381 | | Depreciation Expenses | 2,956 | 3,728 | | Other | 482 | 3,850 | | **Total** | **56,812** | **69,639** | - R&D expenses decreased by **18.4%** from RMB 69.6 million in the same period of 2024 to **RMB 56.8 million** in 2025, primarily because several products have obtained registration certificates and achieved commercialization[92](index=92&type=chunk) [Finance Costs and Income Tax](index=39&type=section&id=6.7%20Finance%20Costs%20and%20Income%20Tax) Finance costs increased by **94.6% to RMB 7.2 million** due to higher bank loan principal, while income tax credit slightly increased - Finance costs increased by **94.6%** from RMB 3.7 million in the same period of 2024 to **RMB 7.2 million** in 2025, primarily due to an increase in bank loan principal[93](index=93&type=chunk) - Income tax credit increased from RMB 1.4 million in the same period of 2024 to **RMB 1.5 million** in 2025, with the change attributed to variations in deferred tax assets and liabilities[94](index=94&type=chunk) [Balance Sheet Items Analysis](index=39&type=section&id=6.8%20Balance%20Sheet%20Items%20Analysis) This section analyzes changes in key balance sheet items, including inventories, receivables, cash and equivalents, and payables [Inventories](index=39&type=section&id=6.8.1%20Inventories) Inventories increased by **34.4% to RMB 124.2 million**, driven by increased stock of products and raw materials to meet anticipated demand - Inventories increased by **34.4%** from RMB 92.4 million as of December 31, 2024, to **RMB 124.2 million** as of June 30, 2025[95](index=95&type=chunk) - The increase was primarily due to increased stock of products and raw materials for anticipated rising demand[95](index=95&type=chunk) [Trade and Other Receivables](index=39&type=section&id=6.8.2%20Trade%20and%20Other%20Receivables) Trade and other receivables decreased by **3.2% to RMB 193.9 million**, reflecting strengthened collection management and improved customer payment efficiency - Trade and other receivables decreased by **3.2%** from RMB 200.3 million as of December 31, 2024, to **RMB 193.9 million** as of June 30, 2025[96](index=96&type=chunk) - The decrease was primarily due to strengthened group collection management and improved customer payment efficiency[96](index=96&type=chunk) [Cash and Cash Equivalents](index=35&type=section&id=6.8.3%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents totaled **RMB 543.9 million**, a decrease from the end of 2024, with bank cash at **RMB 296.9 million** Cash and Cash Equivalents (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fixed Deposits Originally Maturing Over Three Months | — | 111,884 | | Bank Cash | 296,906 | 574,111 | | Fixed Deposits Originally Maturing Within Three Months | 247,387 | — | | Less: Restricted Cash | (419) | (1,362) | | **Cash and Cash Equivalents** | **543,874** | **572,749** | - Cash and cash equivalents located in mainland China were **RMB 351.06 million** (June 30, 2025) and **RMB 413.71 million** (December 31, 2024)[81](index=81&type=chunk) [Trade and Other Payables](index=39&type=section&id=6.8.4%20Trade%20and%20Other%20Payables) Trade and other payables decreased by **2.1% to RMB 160.5 million**, mainly due to the settlement of headquarters construction project payables - Trade and other payables decreased by **2.1%** from RMB 163.9 million as of December 31, 2024, to **RMB 160.5 million** as of June 30, 2025[98](index=98&type=chunk) - The decrease was primarily due to the settlement of payables for the headquarters construction project[98](index=98&type=chunk) [Financial Resources, Liquidity, and Capital Structure](index=39&type=section&id=6.9%20Financial%20Resources,%20Liquidity,%20and%20Capital%20Structure) The company funds operations via bank loans, equity, and cash, with current assets decreasing by **11.7% to RMB 865.0 million**; it maintains a net cash position - Current assets decreased by **11.7%** from RMB 979.2 million as of December 31, 2024, to **RMB 865.0 million** as of June 30, 2025[99](index=99&type=chunk) - As of June 30, 2025, unsecured bank loans amounted to **RMB 117.0 million**, and secured bank loans amounted to **RMB 219.0 million**[99](index=99&type=chunk) - The company is in a net cash position, thus the gearing ratio is not applicable[106](index=106&type=chunk) Part VII [Other Important Information](index=41&type=section&id=VII.%20Other%20Important%20Information) This section covers additional critical information, including significant investments, capital commitments, employee details, corporate governance, and global offering proceeds [Significant Investments, Acquisitions, and Disposals](index=41&type=section&id=7.1%20Significant%20Investments,%20Acquisitions,%20and%20Disposals) The company did not engage in any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period - During the reporting period, the company did not make any significant investments or major acquisitions or disposals of subsidiaries, associates, or joint ventures[101](index=101&type=chunk) [Capital Commitments and Asset Pledges](index=41&type=section&id=7.2%20Capital%20Commitments%20and%20Asset%20Pledges) As of June 30, 2025, total capital commitments were **RMB 15.0 million**, primarily for property and equipment, with **RMB 219.0 million** in secured bank loans pledged against land use rights Capital Commitments (RMB thousands) | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant, and Equipment | 12,488 | 56,327 | | Subscription for Limited Partnership Interests in Funds | 2,500 | 5,205 | | **Total** | **14,988** | **61,532** | - Secured bank loans of **RMB 219.0 million** are pledged against the Group's land use rights[105](index=105&type=chunk) [Employees and Remuneration](index=42&type=section&id=7.3%20Employees%20and%20Remuneration) As of June 30, 2025, the company had **419 employees**, a reduction from the prior year, with total remuneration costs of **RMB 82.8 million** due to operational integration - As of June 30, 2025, the Group had **419** employees (June 30, 2024: **528** employees)[107](index=107&type=chunk) - Total remuneration costs were approximately **RMB 82.8 million** (same period in 2024: RMB 92.3 million), with the decrease primarily due to the integration of global business operations and optimization-driven employee reduction[107](index=107&type=chunk) [Corporate Governance](index=44&type=section&id=7.4%20Corporate%20Governance) The company maintains high corporate governance standards, complying with applicable codes, and has appointed new Nomination Committee members to enhance gender diversity - The company complies with all applicable code provisions of the Corporate Governance Code, except that the roles of Chairman and CEO are not separated, both held by Dr. Liang[110](index=110&type=chunk) - To comply with the Nomination Committee's gender diversity requirements, Ms. Jiang Junchao (Executive Director) and Dr. Yang Shupiao (Independent Non-executive Director) were appointed as Nomination Committee members, effective June 25, 2025[110](index=110&type=chunk) [Use of Proceeds from Global Offering](index=44&type=section&id=7.5%20Use%20of%20Proceeds%20from%20Global%20Offering) The company raised **HKD 1,898.7 million** from its global offering, with **HKD 1,673.2 million** utilized by June 30, 2025, for various R&D, marketing, and production initiatives - The company raised net proceeds of approximately **HKD 1,898.7 million** (equivalent to RMB 1,584.1 million) from its global offering[111](index=111&type=chunk) Use of Proceeds from Global Offering (HKD millions) | Use of Proceeds | Percentage of Planned Total Use | Actual Amount Utilized as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | | Core Product — PGT-A Reagent Kits | 20% | 320.1 | | PGT-A Reagent Kit Sales and Marketing Activities | 8% | 145.4 | | Upgrading Production Machinery and Equipment | 12% | 174.7 | | PGT-M Reagent Kit Clinical Trials, Registration, and Commercialization | 10% | 166.4 | | Other Product Development, Clinical Trials, Registration, and Commercialization | 30% | 532.3 | | Enhancing R&D Capabilities and Technology | 15% | 269.8 | | Construction and Decoration of R&D Center and Expansion of Production Facilities | 10% | 102.4 | | Working Capital and General Corporate Purposes | 15% | 282.2 | | **Total** | **100%** | **1,673.2** | - As of June 30, 2025, **HKD 1,673.2 million** of the global offering proceeds had been utilized, with **HKD 225.5 million** remaining unutilized[113](index=113&type=chunk) [Compliance and Interim Dividend](index=47&type=section&id=7.6%20Compliance%20and%20Interim%20Dividend) The company maintained compliance with all applicable laws and regulations, with no significant disputes or penalties, and the Board did not recommend an interim dividend - During the reporting period, the Group complied in all material respects with the laws, regulations, and regulatory requirements of its operating locations[116](index=116&type=chunk) - The Directors do not recommend the payment of an interim dividend for the reporting period (2024 interim dividend: nil)[117](index=117&type=chunk) [Audit Committee Review](index=48&type=section&id=7.7%20Audit%20Committee%20Review) The Audit Committee and management reviewed accounting policies and interim results, with KPMG conducting a review of the unaudited consolidated interim financial statements - The Audit Committee has reviewed with management the accounting principles and policies adopted by the company and the interim results for the six months ended June 30, 2025[120](index=120&type=chunk) - KPMG, the Group's external auditor, has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[120](index=120&type=chunk) Part VIII [Appendix](index=50&type=section&id=VIII.%20Appendix) This section provides definitions for key terms and abbreviations used throughout the report [Definitions](index=50&type=section&id=8.1%20Definitions) This section provides definitions for key terms and abbreviations used throughout the report, ensuring clarity and consistency

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 佈 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立及於百慕達存續之有限公司） （股份代號：860） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 佈 Apollo智 慧 出 行 集 團 有 限 公 司（「AFMG」或「本 公 司」）董 事（「董 事」）會 （「董 事 會」）公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「本 期 間」）之 未 經 審 核 簡 明 綜 合 中 期 業 績， 連 同 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 之 比 較 數 字。本 期 間 的 未 經 審 核 中 期 簡 明 綜 合 財 務 資 料 經 由 本 公 司 審 核 委 員 會（「審 ...

Interim Results Announcement [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue decreased by 60.2% to RMB 56,667 thousand, gross profit turned positive, and loss per share narrowed to RMB (5.34) cents Condensed Consolidated Statement of Profit or Loss Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 56,667 | 142,483 | -60.2% | | Cost of sales | (55,909) | (146,380) | -61.8% | | Gross profit/(loss) | 758 | (3,897) | N/A (turned from loss to profit) | | Loss before tax | (22,369) | (45,436) | -50.7% | | Loss for the period | (22,311) | (44,648) | -50.0% | | Loss per share attributable to owners of the Company (basic and diluted) | RMB (5.34) cents | RMB (16.47) cents | -67.6% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive loss significantly narrowed to RMB 11,747 thousand, primarily due to foreign exchange differences from overseas operations turning into a gain Condensed Consolidated Statement of Comprehensive Income Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (22,311) | (44,648) | -50.0% | | Exchange differences on translation of foreign operations | 10,564 | (10,769) | N/A (turned from loss to profit) | | Total comprehensive loss for the period | (11,747) | (55,417) | -78.8% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current assets slightly increased, but total current assets significantly decreased, expanding net current liabilities and increasing net liabilities and total deficit, indicating sustained financial pressure Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 108,257 | 102,202 | +5.9% | | Total current assets | 130,119 | 169,401 | -23.2% | | Total current liabilities | 380,721 | 397,209 | -4.2% | | Net current liabilities | (250,602) | (227,808) | +10.0% (loss expanded) | | Net liabilities | (315,051) | (306,194) | +2.9% (loss expanded) | | Total deficit | (315,051) | (306,194) | +2.9% (loss expanded) | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details company information, financial statement preparation basis, accounting policies, segment revenue and results, income and expense breakdowns, share capital changes, related party transactions, and post-reporting period events, addressing significant going concern uncertainties and mitigation plans [Company and Group Information](index=6&type=section&id=Company%20and%20Group%20Information) - The Company is an investment holding company incorporated in the Cayman Islands, with shares listed on the Hong Kong Stock Exchange[8](index=8&type=chunk) - Principal activities include the design, manufacture, and sale of packaging products and structural components; trading of air purification gaseous filtration media, equipment, and related accessories; design, manufacture, sale, and marketing of mahogany furniture; and property investment[9](index=9&type=chunk)[10](index=10&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) - The Group recorded a net loss of approximately **RMB 22,311,000** for the period ended June 30, 2025[9](index=9&type=chunk) - As of June 30, 2025, the Group had net liabilities of approximately **RMB 315,051,000**, with current liabilities exceeding current assets by approximately **RMB 250,602,000**[9](index=9&type=chunk) - Current liabilities include interest-bearing bank and other borrowings of **RMB 298,339,000**, of which **RMB 229,189,000** are overdue[9](index=9&type=chunk) - Significant uncertainty exists regarding going concern, which management plans to address through continuous financial support from major shareholders, the sale of Singapore investment property (expected proceeds of **RMB 62,000,000**), and exploring other potential financing options[11](index=11&type=chunk)[13](index=13&type=chunk) [Significant Accounting Policies and Changes in Accounting Policies and Disclosures](index=8&type=section&id=Significant%20Accounting%20Policies%20and%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) - Financial statements are prepared on a historical cost basis, except for investment properties and financial assets measured at fair value through profit or loss[14](index=14&type=chunk) - Revisions to Hong Kong Financial Reporting Standards were first applied this period, with no significant impact on financial position or performance[15](index=15&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) - The Group is divided into four reporting segments: design, manufacture, and sale of packaging products and structural components; trading of air purification gaseous filtration media, equipment, and related accessories; design, manufacture, sale, and marketing of mahogany furniture; and property investment[16](index=16&type=chunk)[18](index=18&type=chunk) Revenue and Segment Information Summary | Segment | June 30, 2025 Revenue (RMB '000) | June 30, 2024 Revenue (RMB '000) | Change (%) | June 30, 2025 Segment Results (RMB '000) | June 30, 2024 Segment Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sale of packaging products and structural components | 55,809 | 141,112 | -60.5% | (11,032) | (32,072) | | Trading of air purification gaseous filtration media | 103 | 815 | -87.4% | (550) | (1,070) | | Sale of mahogany furniture | 262 | — | N/A | (117) | (805) | | Property investment | 493 | 556 | -11.4% | 1,322 | (1,399) | | **Total** | **56,667** | **142,483** | **-60.2%** | **(10,377)** | **(35,346)** | Revenue and Segment Information Summary | Segment | June 30, 2025 Segment Assets (RMB '000) | December 31, 2024 Segment Assets (RMB '000) | June 30, 2025 Segment Liabilities (RMB '000) | December 31, 2024 Segment Liabilities (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Sale of packaging products and structural components | 136,462 | 159,238 | 66,429 | 97,434 | | Trading of air purification gaseous filtration media | 8,216 | 8,746 | 3,904 | 3,432 | | Sale of mahogany furniture | 8,602 | 8,810 | 4,473 | 1,476 | | Property investment | 65,748 | 86,594 | 294 | 34 | | **Total** | **219,028** | **263,388** | **75,100** | **102,376** | [Other Income and (Losses), Net](index=12&type=section&id=Other%20Income%20and%20(Losses),%20Net) Other Income and (Losses), Net Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Interest income | 76 | 123 | -38.2% | | Exchange differences, net | 2,645 | (1,832) | N/A (turned from loss to profit) | | Impairment of trade and bills receivables | (2,336) | (188) | +1142.6% (impairment expanded) | | Others | (479) | 131 | N/A (turned from profit to loss) | | **Total** | **(94)** | **(1,766)** | **-94.7% (loss narrowed)** | [Finance Costs](index=12&type=section&id=Finance%20Costs) Finance Costs Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 557 | 1,315 | -57.7% | | Interest on other borrowings | 2,569 | 1,518 | +69.2% | | Interest on lease liabilities | 92 | 92 | 0.0% | | Finance costs arising from discounted trade and bills receivables | 312 | 375 | -16.8% | | **Total** | **3,530** | **3,300** | **+6.9%** | [Loss Before Tax](index=13&type=section&id=Loss%20Before%20Tax) Loss Before Tax Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 37,024 | 111,805 | -66.9% | | Employee benefit expenses | 17,440 | 24,221 | -28.0% | | Depreciation of property, plant and equipment | 3,343 | 3,005 | +11.2% | | Gross rental income from investment properties | (493) | (556) | -11.4% | [Income Tax Credit](index=13&type=section&id=Income%20Tax%20Credit) - The Company is not subject to income tax in the Cayman Islands[25](index=25&type=chunk) - Mainland China subsidiaries are subject to enterprise income tax at a rate of **25%**, and Singapore subsidiaries are subject to enterprise income tax provision at a rate of **17%**[25](index=25&type=chunk) Income Tax Credit Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - Mainland China | — | — | | Current tax - Singapore | 23 | 28 | | Over-provision in prior years | (30) | — | | Deferred tax | (51) | (816) | | **Total** | **(58)** | **(788)** | [Dividends](index=14&type=section&id=Dividends) - The Board did not recommend the payment of any dividend for the period[29](index=29&type=chunk) [Loss Per Share Attributable to Owners of the Company](index=15&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Loss Per Share Attributable to Owners of the Company Summary | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB '000) | (21,085) | (43,695) | -51.7% | | Weighted average number of ordinary shares in issue for basic loss per share (thousands) | 394,562 | 265,290 | +48.7% | | Basic and diluted loss per share | RMB (5.34) cents | RMB (16.47) cents | -67.6% | - The Group had no potentially dilutive ordinary shares in issue for the periods ended June 30, 2025 and 2024[31](index=31&type=chunk) [Trade and Bills Receivables](index=16&type=section&id=Trade%20and%20Bills%20Receivables) Trade and Bills Receivables Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 39,229 | 65,969 | -40.5% | | Bills receivables | 40,174 | 23,868 | +68.3% | | Impairment | (5,977) | (3,641) | +64.1% (impairment expanded) | | **Net** | **73,426** | **86,196** | **-14.8%** | Trade and Bills Receivables Summary | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 32,159 | 57,793 | | 4 to 6 months | 938 | 3,575 | | 7 months to 1 year | 1,099 | 1,521 | | **Total** | **34,196** | **62,889** | [Trade Payables](index=17&type=section&id=Trade%20Payables) Trade Payables Summary | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 37,834 | 55,393 | -31.7% | | 4 to 6 months | 24,240 | 11,127 | +117.9% | | Over 6 months | 1,639 | 1,440 | +13.8% | | **Total** | **63,713** | **67,960** | **-6.3%** | - Trade payables are non-interest bearing and generally settled within thirty to ninety days[34](index=34&type=chunk) [Share Capital](index=17&type=section&id=Share%20Capital) Share Capital Summary | Metric | June 30, 2025 (thousands of shares) | January 1, 2024 (thousands of shares) | | :--- | :--- | :--- | | Authorised ordinary shares | 20,000,000 | 1,250,000 | | Issued and fully paid shares | 394,562 | 197,283 | - On March 14, 2024, the Company completed a capital reorganisation, including a capital reduction (par value per share reduced from HKD 0.16 to HKD 0.01) and share subdivision (each HKD 0.16 share subdivided into 16 new HKD 0.01 shares)[35](index=35&type=chunk) - On June 4, 2024, the Company completed a rights issue and share placement, issuing **197,279,000** shares with net proceeds of **HKD 14,667,000**[35](index=35&type=chunk) [Related Party Transactions](index=19&type=section&id=Related%20Party%20Transactions) Related Party Transactions Summary | Related Party | Transaction Type | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Interest Rate | Remarks | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Tsang Man Yau, Director | Amount due from a director | 1,426 | — | 12% | Unsecured, repayable on demand | | E-Invest (China) Co., Ltd. | Outstanding loan balance | 137,787 | 145,697 | 2% | Controlling shareholder company | [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) - Subsidiary Sichuan Hejing Packaging Products Co., Ltd. was claimed for **RMB 5,977,785.32** by Deyang Rural Commercial Bank due to overdue borrowings, and its four properties were auctioned for **RMB 11,700,000** on August 12, 2025[38](index=38&type=chunk) - Hejing Packaging was also claimed for **RMB 5,958,811.20** by Industrial and Commercial Bank of China, with its land and buildings ordered for auction sale[38](index=38&type=chunk)[39](index=39&type=chunk) - The SFC petition against the company is ongoing, with no resolution expected before **June 30, 2026**[39](index=39&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, market outlook, and financial position; packaging products and structural components revenue significantly declined, property investment business is planned for sale, and the company faces ongoing operational challenges, adopting defensive strategies and seeking new business opportunities; financially, revenue decreased but loss narrowed, liquidity is constrained, gearing ratio increased, and the company plans equity fundraising to improve liquidity [Business Review](index=22&type=section&id=Business%20Review) - The Company primarily engages in the design, manufacturing, and sale of packaging products and structural components, air purification gaseous filtration media, mahogany furniture, and property investment through its subsidiaries[40](index=40&type=chunk) [Packaging Products and Structural Components Business](index=22&type=section&id=Packaging%20Products%20and%20Structural%20Components%20Business) For the six months ended June 30, 2025, packaging products and structural components revenue decreased by 60.5% to RMB 55,809 thousand due to intense competition, with sales costs also down 61.8% and gross margin slightly up due to cost controls Packaging Products and Structural Components Business Summary | Product | June 30, 2025 Revenue (RMB '000) | Percentage (%) | June 30, 2024 Revenue (RMB '000) | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Air conditioners (packaging products) | 29,628 | 53.1 | 31,350 | 22.2 | -5.5% | | Televisions | 22,901 | 41.0 | 39,224 | 27.8 | -41.6% | | Washing machines | 894 | 1.6 | 36,038 | 25.5 | -97.5% | | Refrigerators | 527 | 0.9 | 26,931 | 19.1 | -98.0% | | Air conditioners (structural components) | 1,466 | 2.7 | 2,280 | 1.6 | -35.7% | | **Total** | **55,809** | **100.0** | **141,112** | **100.0** | **-60.5%** | - Revenue decline primarily due to intense competition, resulting in failure to secure certain business tenders as expected[44](index=44&type=chunk) - Slight increase in gross profit margin mainly due to cost control measures, including reductions in labor and transportation costs[44](index=44&type=chunk) Packaging Products and Structural Components Business Summary | Cost of Sales Breakdown | June 30, 2025 (RMB '000) | Percentage (%) | June 30, 2024 (RMB '000) | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw materials | 37,024 | 66.6 | 111,805 | 76.8 | -66.9% | | Direct labor costs | 5,122 | 9.2 | 7,963 | 5.5 | -35.7% | | Manufacturing overheads | 13,424 | 24.2 | 25,845 | 17.7 | -48.1% | | **Total** | **55,570** | **100.0** | **145,613** | **100.0** | **-61.8%** | [Property Investment Business](index=24&type=section&id=Property%20Investment%20Business) For the six months ended June 30, 2025, Singapore investment property generated RMB 493 thousand in rental income, and the company has listed it for sale to enhance liquidity, which is expected to be a discloseable transaction - Singapore investment property recorded rental income of **RMB 493 thousand**[47](index=47&type=chunk) - To enhance liquidity, the company has listed the investment property for sale, which is expected to constitute a discloseable/announceable transaction[47](index=47&type=chunk) [Update on Petition](index=24&type=section&id=Update%20on%20Petition) The SFC petition against the company is ongoing, with the second case management conference held and the third scheduled after October 27, 2025, with no resolution expected before June 30, 2026 - The SFC petition against the company is ongoing, with no resolution expected before **June 30, 2026**[48](index=48&type=chunk) [Outlook](index=25&type=section&id=Outlook) - Management believes the global environmental landscape will remain uncertain and challenging[51](index=51&type=chunk) - The Group will continue defensive strategies, enhancing efficiency, streamlining operations, reducing costs, and actively exploring new business potential and opportunities[51](index=51&type=chunk) [Packaging Products and Structural Components Business Outlook](index=25&type=section&id=Packaging%20Products%20and%20Structural%20Components%20Business%20Outlook) China's 2025 GDP growth is projected at 4.6%, but weak domestic consumption, high local government debt, and global economic uncertainty persist; the Group will seek new clients, enhance cost management, and remain cautiously optimistic - China's full-year GDP is projected to reach **4.6%** in 2025, but weak domestic consumption, high local government debt, and global economic uncertainty remain concerns[49](index=49&type=chunk) - The Group will continue to focus on identifying new customers and prudently seizing suitable business opportunities, while continuously improving efficiency and strengthening cost management[49](index=49&type=chunk) [Property Investment Business Outlook](index=25&type=section&id=Property%20Investment%20Business%20Outlook) Singapore's real estate market is influenced by global trends and currency strength, with a strong Singapore Dollar boosting investor confidence; Q3 2025 is expected to remain cautiously optimistic, showing stable and sustained growth - Singapore's real estate market is influenced by global economic trends and currency strength, with a strong Singapore Dollar boosting investor confidence[50](index=50&type=chunk) - The market is expected to remain cautiously optimistic in Q3 2025, with key indicators showing stable and sustained growth[50](index=50&type=chunk) [Conclusion](index=26&type=section&id=Conclusion) Management anticipates a challenging global environment, and the Group will respond by improving efficiency, streamlining operations, reducing costs, and actively pursuing new business opportunities for profitable growth and enhanced shareholder value - Management believes the global environmental landscape will remain uncertain and challenging, and the Group will continuously improve efficiency, streamline operations, and reduce operating costs[51](index=51&type=chunk) - The Company will continue to prudently develop and maximize the potential of new businesses and seek new business opportunities, aiming for profitable growth and enhanced long-term stakeholder value[51](index=51&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) - The Group generally funds its operations through internally generated cash flows, bank borrowings, and loans from shareholders and independent third parties[53](index=53&type=chunk) [Financial Results](index=26&type=section&id=Financial%20Results) For the six months ended June 30, 2025, Group revenue decreased by 60.2% to RMB 56,667 thousand, loss attributable to owners narrowed by 51.7% to RMB 21,085 thousand, and basic and diluted loss per share was RMB 5.34 cents Financial Results Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 56,667 | 142,483 | -60.2% | | Loss attributable to owners of the Company | (21,085) | (43,695) | -51.7% | | Basic and diluted loss per share | RMB 5.34 cents | RMB 16.47 cents | -67.6% | [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and bank balances significantly decreased to RMB 16,584 thousand from RMB 39,922 thousand, with total borrowings at RMB 469,786 thousand, mostly short-term; the company will actively seek external financing and equity fundraising to improve liquidity Liquidity and Financial Resources Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 16,584 | 39,922 | -58.5% | | Total borrowings | 469,786 | 485,570 | -3.2% | | Short-term borrowings (repayable within one year) | 298,339 | 307,070 | -2.8% | | Long-term borrowings (repayable after two years but within five years) | 171,447 | 178,500 | -4.0% | - Cash and bank balances are primarily denominated in **HKD (71.4%)**, **SGD (18.0%)**, **RMB (10.0%)**, and **USD (0.6%)**[53](index=53&type=chunk) - The Company will take proactive steps to improve the Group's liquidity and financial position through equity fundraising activities[54](index=54&type=chunk) [Capital Structure and Capital Management](index=27&type=section&id=Capital%20Structure%20and%20Capital%20Management) As of June 30, 2025, issued share capital was RMB 3,520 thousand, comprising 394,561,751 ordinary shares of HKD 0.01 each; the Group aims to safeguard going concern and maintain a sound capital ratio, with no changes to capital management objectives, policies, or procedures during the period - As of June 30, 2025, issued share capital was approximately **RMB 3,520,000**, divided into **394,561,751** ordinary shares of **HKD 0.01** each[55](index=55&type=chunk) - Capital management objectives are to safeguard going concern ability and maintain a sound capital ratio, with no changes to objectives, policies, or procedures during the reporting period[55](index=55&type=chunk) [Capital Expenditure](index=27&type=section&id=Capital%20Expenditure) Capital expenditure for the period was approximately RMB 7,091 thousand, primarily for property, plant, and equipment and right-of-use assets, a significant decrease from December 31, 2024 Capital Expenditure Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Capital expenditure | 7,091 | 21,087 | -66.3% | [Capital Commitments](index=27&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments[57](index=57&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[58](index=58&type=chunk) [Pledged Assets](index=28&type=section&id=Pledged%20Assets) The Group pledged buildings and right-of-use assets of approximately RMB 17,863 thousand to banks, and the entire issued share capital of a wholly-owned subsidiary and Singapore investment property to financial institutions - As of June 30, 2025, the Group pledged buildings and right-of-use assets of approximately **RMB 17,863 thousand** to banks[59](index=59&type=chunk) - The entire issued share capital of a wholly-owned subsidiary and Singapore investment property have been pledged to lenders/financial institutions[59](index=59&type=chunk) [Gearing Ratio](index=28&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio increased to 1.97 from 1.79 as of December 31, 2024 Gearing Ratio Summary | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 1.97 | 1.79 | +0.18 | [Foreign Exchange Risk](index=28&type=section&id=Foreign%20Exchange%20Risk) The Group's business transactions are primarily denominated in HKD and RMB, with directors deeming no significant foreign currency risk; currently, there is no foreign currency hedging policy, but management monitors risks and considers hedging when necessary - The Group's business transactions are primarily denominated in **HKD** and **RMB**, with directors deeming no significant foreign currency risk[61](index=61&type=chunk) - The Group currently has no foreign currency hedging policy, but management monitors foreign exchange risks and considers hedging when necessary[61](index=61&type=chunk) [Use of Proceeds from Placing and Public Offer](index=28&type=section&id=Use%20of%20Proceeds%20from%20Placing%20and%20Public%20Offer) The Company fully utilized net proceeds of approximately HKD 44,500,000 from placing and public offer for bank loan repayment, general working capital, acquisition and upgrade of plant and machinery, and acquisition and modification of molds - Net proceeds of approximately **HKD 44,500,000** from placing and public offer have been fully utilized[62](index=62&type=chunk) - Uses include repayment of bank loans (**HKD 2,700,000**), general working capital (**HKD 2,900,000**), acquisition, modification, and upgrade of plant and machinery (**HKD 29,000,000**), and acquisition and modification of molds (**HKD 9,900,000**)[62](index=62&type=chunk) [Use of Proceeds from Rights Issue](index=29&type=section&id=Use%20of%20Proceeds%20from%20Rights%20Issue) The Company fully utilized net proceeds of approximately HKD 14.67 million from the rights issue on June 4, 2024, for repayment of outstanding borrowings and general working capital - Net proceeds of approximately **HKD 14.67 million** from the rights issue on June 4, 2024, have been fully utilized[63](index=63&type=chunk) - Proceeds were used for repayment of the Group's outstanding borrowings and general working capital[63](index=63&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers the company's securities transactions, acquisitions, disposals, dividend policy, segment information disclosure, compliance with the Standard Code for Securities Transactions and Corporate Governance Code, and the Audit Committee's responsibilities [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[64](index=64&type=chunk) [Acquisitions, Disposals and Material Investments](index=29&type=section&id=Acquisitions,%20Disposals%20and%20Material%20Investments) - Except as disclosed in this announcement, the Group did not undertake any significant acquisitions, disposals, or investments during the period[65](index=65&type=chunk) [Dividends (Other Information)](index=29&type=section&id=Dividends%20(Other%20Information)) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[66](index=66&type=chunk) [Segment Information](index=29&type=section&id=Segment%20Information) - Details of segment information are set out in Note 4 to the unaudited condensed consolidated financial statements[67](index=67&type=chunk) [Compliance with Standard Code for Securities Transactions](index=29&type=section&id=Compliance%20with%20Standard%20Code%20for%20Securities%20Transactions) - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[68](index=68&type=chunk) - All current directors confirmed compliance with the Model Code throughout the period[68](index=68&type=chunk) [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) - The Company has fully complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the period[69](index=69&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[70](index=70&type=chunk) - The Committee discussed accounting principles, accounting standards, methods, and internal control matters[70](index=70&type=chunk)

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) The group reported a **45% decrease in revenue** to RMB 33.19 million, a **101% increase in gross profit** to RMB 0.87 million, and a **96% reduction in loss for the period** to RMB 13.43 million | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 33.19 | 60.71 | (45%) | | Gross Profit / (Loss) | 0.87 | (63.78) | 101% | | Loss Before Tax | (13.40) | (332.42) | (96%) | | Loss for the Period | (13.43) | (312.01) | (96%) | | Basic Loss Per Share (RMB cents) | (0.90) | (21.29) | (96%) | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements present the group's financial performance and position, highlighting a significant reduction in loss for the period and persistent net current liabilities [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the group's revenue decreased by 45% to RMB 33.19 million, gross profit turned positive, and loss for the period significantly narrowed by 96% due to reduced finance costs and impairment losses | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Revenue | 33,193 | 60,712 | | Cost of Sales | (32,325) | (124,493) | | Gross Profit / (Loss) | 868 | (63,781) | | Other Income | 33 | 274 | | Net Other Gains and Losses | 3,220 | (6,279) | | Selling and Distribution Expenses | (652) | (2,760) | | Administrative Expenses | (7,180) | (18,271) | | Impairment Losses | – | (51,889) | | Finance Costs | (9,384) | (185,365) | | Loss Before Tax | (13,397) | (332,421) | | Loss for the Period | (13,432) | (312,012) | | Total Comprehensive Expense for the Period | (6,746) | (317,200) | | Basic Loss Per Share (RMB cents) | (0.90) | (21.29) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group reported total non-current assets of RMB 18.05 million, total current assets of RMB 3,514.48 million, net current liabilities of RMB 1,824.20 million, and a total deficit of RMB 1,813.48 million, indicating ongoing financial pressure | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 18,051 | 18,356 | | Current Assets | 3,514,484 | 3,494,570 | | **Liabilities** | | | | Current Liabilities | 5,338,679 | 5,312,324 | | Non-current Liabilities | 7,336 | 7,336 | | **Equity** | | | | Net Current Liabilities | (1,824,195) | (1,817,754) | | Total Assets Less Current Liabilities | (1,806,144) | (1,799,398) | | Deficit Attributable to Owners of the Company | (1,879,337) | (1,873,297) | | Total Deficit | (1,813,480) | (1,806,734) | [Notes to the Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) These notes provide detailed explanations of the group's accounting policies, financial performance, and position, including segment information, impairment losses, and ongoing litigation [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with HKAS 34, with management addressing ongoing concern issues such as losses, net current liabilities, and loan defaults - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[10](index=10&type=chunk) - The group recorded a net loss of approximately **RMB 13.4 million** for the period, a total deficit attributable to owners of the Company of approximately **RMB 1.8793 billion**, and net current liabilities exceeding current assets by approximately **RMB 1.8242 billion**[11](index=11&type=chunk) - The group was unable to repay borrowings totaling approximately **RMB 151.5 million** and related accrued interest of approximately **RMB 37.1 million** by their scheduled repayment dates, resulting in approximately **RMB 188.6 million** of defaulted borrowings becoming immediately repayable[11](index=11&type=chunk) - Management has formulated plans and measures to improve liquidity and financial position, including generating operating cash flows from new business opportunities, negotiating new or renewed loans with lenders, and controlling administrative costs[12](index=12&type=chunk) [2. Significant Accounting Policies](index=7&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial information is prepared on a historical cost basis, with investment properties and certain financial assets measured at fair value, and recent HKFRS amendments having no material impact - The condensed consolidated financial information is prepared on a historical cost basis, except for investment properties and certain financial assets measured at fair value through other comprehensive income[13](index=13&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards, including HKAS 21 (Amendment) The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability, had no material impact on the group's financial position and performance during the interim period[14](index=14&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) Total revenue for the period decreased by 45% to RMB 33.19 million, primarily due to a significant reduction in property sales, partially offset by new supply chain business revenue of RMB 30 million | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of Completed Properties | 3,024 | 60,295 | | Sales of Goods | 30,000 | – | | Rental Income | 169 | 417 | | **Total Revenue** | **33,193** | **60,712** | - The new supply chain business contributed **RMB 30,000 thousand** in revenue during the period[17](index=17&type=chunk) - All revenue from customer contracts is recognized at a point in time and entirely derived from the China market[16](index=16&type=chunk) [4. Segment Information](index=9&type=section&id=4.%20Segment%20Information) The group operates in property development, property investment, and supply chain segments, with property development revenue significantly declining while the new supply chain business contributes to revenue | Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | | Property Development | 3,024 | 60,295 | | Property Investment | 169 | 417 | | Supply Chain Business | 30,000 | – | | **Total Segments** | **33,193** | **60,712** | | Segment | 2025 Profit / (Loss) (RMB thousand) | 2024 Loss (RMB thousand) | | :--- | :--- | :--- | | Property Development | (2,277) | (76,100) | | Property Investment | 129 | (5,035) | | Supply Chain Business | 141 | – | | **Total Segments** | **(2,007)** | **(81,135)** | | Segment Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Development | 1,008,939 | 1,011,323 | | Property Investment | 7,119 | 7,113 | | Supply Chain Business | 30,000 | – | | **Total Segments** | **1,046,058** | **1,018,436** | | Unallocated | 2,486,477 | 2,494,490 | | **Total Consolidated Assets** | **3,532,535** | **3,512,926** | | Segment Liabilities | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Development | 1,229,251 | 1,231,563 | | Property Investment | 167 | 167 | | Supply Chain Business | 29,894 | – | | **Total Segments** | **1,259,312** | **1,231,730** | | Unallocated | 4,086,703 | 4,087,930 | | **Total Consolidated Liabilities** | **5,346,015** | **5,319,660** | [5. Impairment Losses](index=11&type=section&id=5.%20Impairment%20Losses) No impairment losses were recognized in the current period, a significant improvement compared to the RMB 51.89 million impairment losses recorded in the prior period related to former subsidiaries and non-controlling interests | Source of Impairment Losses | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Amounts Due from a Former Subsidiary | – | 31,489 | | Amounts Due from Non-controlling Interests | – | 20,400 | | **Total** | **–** | **51,889** | [6. Other Income, Gains and Losses](index=12&type=section&id=6.%20Other%20Income%2C%20Gains%20and%20Losses) Other income for the period was RMB 33 thousand, and net other gains and losses were RMB 3,220 thousand, primarily driven by net exchange gains, contrasting with prior period exchange losses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Other Income** | | | | Rental Income from Short-term Leases of Completed Properties Held for Sale | – | 116 | | Bank Interest Income | 7 | 108 | | Others | 26 | 50 | | **Subtotal** | **33** | **274** | | **Net Other Gains and Losses** | | | | Gain on Disposal of Property, Plant and Equipment | – | 14 | | Net Exchange Gains / (Losses) | 3,220 | (6,293) | | **Subtotal** | **3,220** | **(6,279)** | [7. Finance Costs](index=12&type=section&id=7.%20Finance%20Costs) Finance costs significantly decreased by approximately 95% to RMB 9,384 thousand, primarily due to a substantial reduction in interest on bank and other borrowings | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 9,384 | 180,798 | | Interest on Contract Liabilities | – | 4,567 | | **Total** | **9,384** | **185,365** | [8. Income Tax (Expense) / Credit](index=13&type=section&id=8.%20Income%20Tax%20%28Expense%29%20%2F%20Credit) The group recorded an income tax expense of RMB 35 thousand for the period, compared to an income tax credit of RMB 20,409 thousand in the prior period, mainly due to the reversal of an over-provision for land appreciation tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax Expense / (Credit) | | | | China Corporate Income Tax | 35 | 2,497 | | Land Appreciation Tax | – | (22,821) | | **Subtotal** | **35** | **(20,324)** | | Deferred Tax Credit | – | (85) | | **Total** | **35** | **(20,409)** | - The prior year's income tax credit was primarily due to the recognition of an over-provision for land appreciation tax from the previous year[24](index=24&type=chunk) [9. Loss for the Period](index=14&type=section&id=9.%20Loss%20for%20the%20Period) The loss for the period is calculated after deducting costs of properties sold, cost of goods sold, and staff costs, with no impairment losses on properties under development or held for sale in the current period | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Properties Held for Sale Included in Cost of Sales | 2,605 | 124,471 | | Cost of Goods Sold Included in Cost of Sales | 29,700 | – | | Impairment Losses on Properties Under Development / Held for Sale Included in Cost of Sales | – | 58,425 | | Depreciation of Property, Plant and Equipment | 4 | 997 | | Total Staff Costs | 3,080 | 7,981 | [10. Dividends](index=14&type=section&id=10.%20Dividends) No dividends were paid or proposed to the company's shareholders for the six months ended June 30, 2025, or 2024 - No dividends were paid or proposed to the Company's shareholders for the six months ended June 30, 2025 and 2024[26](index=26&type=chunk) [11. Loss Per Share](index=15&type=section&id=11.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners of the company significantly narrowed to RMB 0.90 cents for the six months ended June 30, 2025, from RMB 21.29 cents in the prior period | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company | (12,726) | (302,399) | | Basic Loss Per Share (RMB cents) | (0.90) | (21.29) | | Diluted Loss Per Share (RMB cents) | (0.90) | (21.29) | - Diluted loss per share is equal to basic loss per share as there were no dilutive potential ordinary shares outstanding during the period[30](index=30&type=chunk) [12. Investment Properties](index=15&type=section&id=12.%20Investment%20Properties) The group's investment properties, located in China, are measured using the fair value model and maintained an unchanged fair value at the end of the period - All of the group's interests in properties held under operating leases to earn rentals or for capital appreciation, or both, are measured using the fair value model and classified and accounted for as investment properties[31](index=31&type=chunk) - Investment properties are located in China[32](index=32&type=chunk) [13. Properties Under Development / Properties Held for Sale](index=16&type=section&id=13.%20Properties%20Under%20Development%20%2F%20Properties%20Held%20for%20Sale) As of June 30, 2025, properties under development remained at RMB 122.66 million, while properties held for sale slightly decreased to RMB 259.75 million | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Properties Under Development | 122,660 | 122,660 | | Properties Held for Sale | 259,745 | 262,002 | | **Total** | **382,405** | **384,662** | [14. Receivables and Prepayments](index=16&type=section&id=14.%20Receivables%20and%20Prepayments) Total receivables and prepayments amounted to RMB 3,094.06 million as of June 30, 2025, with a substantial portion comprising unsecured, interest-free, and on-demand amounts due from former subsidiaries | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Other Receivables and Prepayments | 3,086,957 | 3,064,427 | | Prepayments to Suppliers | 5,889 | 5,990 | | Prepaid Other Taxes | 1,209 | 1,203 | | **Total** | **3,094,055** | **3,071,647** | - Other receivables and prepayments include amounts due from former subsidiaries of approximately **RMB 3,040,547,000** (2024: approximately **RMB 3,047,745,000**), which are unsecured, interest-free, and repayable on demand[35](index=35&type=chunk) | Trade Receivables Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 Days | 30,000 | – | | **Total** | **30,000** | **–** | [15. Disposal of a Subsidiary](index=17&type=section&id=15.%20Disposal%20of%20a%20Subsidiary) The group disposed of its equity interest in Hunan Asia-Pacific Meilifang Investment Property Co., Ltd. on May 21, 2024, resulting in a disposal loss of approximately RMB 4.315 million and a net cash inflow of RMB 459 thousand - The group disposed of its equity interest in Hunan Asia-Pacific Meilifang Investment Property Co., Ltd. on May 21, 2024, resulting in a disposal loss of approximately **RMB 4,315,000**[37](index=37&type=chunk)[38](index=38&type=chunk) - The net cash inflow from the disposal of Hunan Asia-Pacific was **RMB 459,000**[38](index=38&type=chunk) [16. Payables and Accrued Expenses](index=18&type=section&id=16.%20Payables%20and%20Accrued%20Expenses) Total payables and accrued expenses were RMB 4,921.50 million as of June 30, 2025, primarily consisting of amounts due to former subsidiaries and including a financial guarantee provision of RMB 599.78 million | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Other Payables and Accrued Expenses | 3,679,990 | 3,661,098 | | Interest Payable | 50,662 | 41,285 | | Other Taxes Payable | 189,755 | 178,552 | | Financial Guarantee Provision | 599,775 | 599,775 | | **Total** | **4,921,496** | **4,898,797** | - Other payables and accrued expenses include amounts due to former subsidiaries of **RMB 3,123,068,000** (2024: **RMB 3,140,253,000**), which are unsecured, interest-free, and repayable on demand[39](index=39&type=chunk) | Trade Payables Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 60 Days | 29,700 | – | | Over One Year | 43 | 43 | | **Total** | **29,743** | **43** | [17. Borrowings](index=19&type=section&id=17.%20Borrowings) The group's total borrowings amounted to RMB 194.69 million, including those subject to repayment on demand, with new borrowings of RMB 889 thousand raised and no repayments made during the period | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other Loans | 194,691 | 193,860 | | Borrowings Not Subject to Repayment on Demand Clause | 153,823 | 152,992 | | Borrowings Subject to Repayment on Demand Clause | 40,868 | 40,868 | | **Total** | **194,691** | **193,860** | - For the six months ended June 30, 2025, the group raised new borrowings of approximately **RMB 889,000** and made no repayments of borrowings[41](index=41&type=chunk) [18. Share Capital](index=19&type=section&id=18.%20Share%20Capital) As of June 30, 2025, the company's authorized share capital was 50 billion shares, with 1,420,673,262 issued and fully paid shares, each with a par value of HKD 0.01 | Item | Number of Shares | Amount (HKD thousand) | Equivalent Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | Authorized Share Capital (Par Value HKD 0.01 per share) | 50,000,000,000 | 500,000 | 423,381 | | Issued and Fully Paid Share Capital (Par Value HKD 0.01 per share) | 1,420,673,262 | 14,207 | 12,924 | [19. Pledge of Assets](index=20&type=section&id=19.%20Pledge%20of%20Assets) The group's properties under development and properties held for sale, totaling RMB 295.44 million, are pledged as security for bank and other financing, as well as customer mortgage loans | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Properties Under Development | 122,660 | 122,660 | | Properties Held for Sale | 172,781 | 172,781 | | **Total** | **295,441** | **295,441** | - Certain shares of the group's subsidiaries are pledged as security for certain borrowings granted to the group[45](index=45&type=chunk) [20. Other Commitments](index=20&type=section&id=20.%20Other%20Commitments) As of the reporting period end, the group had contracted but unprovided property development commitments totaling RMB 1,373 thousand | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Commitments for Property Development Contracted but Not Provided for in the Condensed Consolidated Financial Information | 1,373 | 1,373 | [21. Litigation](index=20&type=section&id=21.%20Litigation) The group is involved in various legal proceedings arising in the ordinary course of business, with provisions made when outcomes can be reliably estimated and are probable - Provisions are made for potential losses from claims when management, based on judgment and legal advice, can reliably estimate the outcome of the litigation[47](index=47&type=chunk) - No provisions are made for outstanding litigation when the outcome cannot be reliably estimated or when management believes that an outflow of resources is not probable[47](index=47&type=chunk) [22. Events After the Reporting Period](index=20&type=section&id=22.%20Events%20After%20the%20Reporting%20Period) No significant events occurred after the reporting date and up to the date of the condensed consolidated financial statements - No significant events occurred after the reporting date and up to the date of these condensed consolidated financial statements[48](index=48&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's operational performance, financial position, and future strategies, including business segment reviews, operating expenses, and outlook [Overall Review](index=21&type=section&id=Overall%20Review) The group's core business remains focused on property development and investment, with a new expansion into the supply chain sector, which has contributed new revenue despite a significant decline in property sales - The group's principal business remains concentrated in the property sector, encompassing property development and property investment, and has further expanded into the supply chain sector[49](index=49&type=chunk) [Property Development](index=21&type=section&id=Property%20Development) Property sales revenue significantly decreased by 95.0% to RMB 3.024 million, primarily due to the continued contraction of the real estate market in lower-tier cities | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales Revenue | 3,024 | 60,295 | (95.0%) | - Property sales revenue during the period was solely from Hunan Province, whereas in prior periods it was from Zhejiang, Hunan, Fujian, and Guangdong Provinces in mainland China[49](index=49&type=chunk) - The significant decline in sales was due to the continued contraction of the real estate market in second-tier, third-tier, and lower-tier cities, which experienced insufficient recovery[49](index=49&type=chunk) [Property Investment](index=21&type=section&id=Property%20Investment) Rental income from property investment was RMB 169 thousand, primarily from commercial investment properties in Changsha, with the fair value of the investment property portfolio remaining unchanged | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Rental Income | 169 | 417 | - Rental income primarily derived from commercial investment properties in Changsha[50](index=50&type=chunk) - The fair value of the group's investment property portfolio remained unchanged as of June 30, 2025[51](index=51&type=chunk) [Supply Chain Business](index=21&type=section&id=Supply%20Chain%20Business) The group successfully expanded into the supply chain sector within China, contributing approximately RMB 30 million in revenue, leveraging its control over properties and logistics facilities - The group has successfully expanded its business into the supply chain sector within China, contributing revenue of approximately **RMB 30,000,000** during the period[52](index=52&type=chunk) - This diversification leverages the group's direct control over properties, warehousing facilities, and logistics centers, creating synergistic revenue streams[52](index=52&type=chunk) [Operating Expenses](index=22&type=section&id=Operating%20Expenses) Both selling and distribution expenses and administrative expenses significantly decreased, leading to an improved expense-to-revenue ratio for the period | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Expense-to-Revenue Ratio (2025) | Expense-to-Revenue Ratio (2024) | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 652 | 2,760 | 1.96% | 4.55% | | Administrative Expenses | 7,180 | 18,271 | 21.63% | 30.09% | [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs for the period substantially decreased to RMB 9,384 thousand, a significant reduction from RMB 185,365 thousand in the prior period | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance Costs | 9,384 | 185,365 | [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) The group recorded an income tax expense of RMB 35 thousand, contrasting with an income tax credit of RMB 20,409 thousand in the prior period, mainly due to the reversal of an over-provision for land appreciation tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Income Tax Expense / (Credit) | 35 | (20,409) | - The prior year's income tax credit was primarily due to the recognition of an over-provision for land appreciation tax from the previous year[55](index=55&type=chunk) [Outlook](index=22&type=section&id=Outlook) Facing a challenging property market, the group plans strategic growth initiatives, including geographical expansion into high-potential markets like Guangzhou, Shenzhen, Japan, and Australia, and diversifying its business into modern logistics and data centers - The China property market continues to face uncertainties, and the operating environment remains highly volatile, making 2025 an extremely challenging year for the group[56](index=56&type=chunk) - The group will expand its geographical footprint, actively seizing quality development opportunities in major cities like Guangzhou and Shenzhen, while also exploring high-potential Asian markets, including Japan and Australia[56](index=56&type=chunk) - The group will strategically enrich its business portfolio by accelerating investments in modern logistics warehousing, distribution centers, and data centers to respond to growing demand driven by e-commerce, cloud computing, and economic digitalization[57](index=57&type=chunk) [Events After Review Period](index=23&type=section&id=Events%20After%20Review%20Period) No significant events occurred after the reporting date - No significant events occurred after the reporting date[58](index=58&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the period - The Board of Directors resolved not to declare an interim dividend for the period (prior period: nil)[59](index=59&type=chunk) [Corporate Governance and Other Information](index=23&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance standards, including compliance with the Listing Rules, securities trading codes, and the audit committee's review of interim results [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The group complied with the Corporate Governance Code provisions, except for the combined roles of Chairman and Chief Executive Officer, which the Board believes has sufficient safeguards for power balance - The group has complied with the code provisions set out in Appendix C1 to the Listing Rules throughout the period, except that the roles of chairman and chief executive officer should be separate and not performed by the same individual[60](index=60&type=chunk) - The functions of the Company's Chairman and Chief Executive Officer are currently performed by Dr. Jin Zibo, an executive director and Chief Executive Officer, and the Board believes there are sufficient safeguards to ensure an appropriate balance of power within the Board[60](index=60&type=chunk) [Standard Code for Securities Transactions](index=24&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and each Director has confirmed compliance with the required standards set out in the Standard Code throughout the period[61](index=61&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[62](index=62&type=chunk) [Interim Results Reviewed by the Audit Committee](index=24&type=section&id=Interim%20Results%20Reviewed%20by%20the%20Audit%20Committee) The company's Audit Committee, comprising three independent non-executive directors, reviewed the group's unaudited interim results for the period - The Company's Audit Committee, currently comprising three independent non-executive directors, is primarily responsible for reviewing, examining, and overseeing the Company's financial reporting process, financial reporting, risk management, and internal control systems[63](index=63&type=chunk) - The Audit Committee has reviewed the group's unaudited interim results for the period[63](index=63&type=chunk) [Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=24&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This interim results announcement is published on the HKEX and company websites, with the full 2025 interim report to be dispatched to shareholders and published in due course - This interim results announcement is published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.jkgc.com.hk)[64](index=64&type=chunk) - The 2025 Interim Report, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the HKEX website and the Company's website in due course[64](index=64&type=chunk)

Company Information [SEEC Media Group Limited Unaudited Condensed Consolidated Interim Results](index=1&type=section&id=SEEC%20Media%20Group%20Limited%20Unaudited%20Condensed%20Consolidated%20Interim%20Results) This report presents the unaudited condensed consolidated interim results of SEEC Media Group Limited (Stock Code: 205) for the six months ended June 30, 2025 - The report covers the unaudited condensed consolidated interim results of SEEC Media Group Limited for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue slightly increased, but gross profit declined, while a significant gain from fair value changes of investments held for trading, compared to a loss last year, substantially narrowed the loss for the period Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 15,744 | 15,331 | +2.7% | | Cost of Sales | (8,100) | (4,897) | +65.4% | | Gross Profit | 7,644 | 10,434 | -26.8% | | Fair Value Changes of Investments Held for Trading | 8,861 | (34,962) | From Loss to Gain | | Loss Before Tax | (376) | (25,701) | -98.5% | | Loss for the Period | (376) | (25,701) | -98.5% | | Loss for the Period Attributable to Owners of the Company | (829) | (25,167) | -96.7% | | Basic Loss Per Share (HKD) | (0.001) | (0.031) | -96.8% | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, net current assets marginally decreased, and expanded non-controlling interests led to a slight reduction in total equity Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 11,354 | 12,080 | -6.0% | | Current Assets | 319,967 | 311,048 | +2.9% | | Current Liabilities | 152,548 | 142,071 | +7.4% | | Net Current Assets | 167,419 | 168,977 | -0.9% | | Net Assets | 153,976 | 155,421 | -0.9% | | Equity Attributable to Owners of the Company | 173,657 | 175,194 | -0.9% | | Non-controlling Interests | (19,681) | (19,773) | -0.5% | Notes to the Financial Statements [Basis of Preparation and Principal Accounting Policies](index=4&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention, with financial instruments measured at revalued amounts or fair value, and the first-time application of HKFRS amendments had no material impact on financial position or performance - The financial statements adhere to **HKAS 34** and Appendix D2 of the Listing Rules, applying the historical cost convention, with financial instruments measured at revalued amounts or fair value[6](index=6&type=chunk)[7](index=7&type=chunk) - The first-time application of **HKAS 21 (Amendments) 'Lack of Exchangeability'** in the current period had no material impact on the Group's financial position or performance[7](index=7&type=chunk) [Revenue and Segment Information](index=4&type=section&id=Revenue%20and%20Segment%20Information) The Group operates three reportable segments: advertising services, securities brokerage services, and money lending, with advertising services revenue significantly increasing, money lending revenue decreasing, and securities brokerage services revenue being zero - The Group operates three business segments: providing advertising services, providing securities brokerage services, and money lending[9](index=9&type=chunk) Revenue by Reportable Segment | Segment | Revenue for Six Months Ended June 30, 2025 (HK$'000) | Revenue for Six Months Ended June 30, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Advertising Services | 10,357 | 8,259 | +25.4% | | Securities Brokerage Services | – | 156 | -100% | | Money Lending | 5,387 | 6,916 | -22.1% | | **Total Revenue** | **15,744** | **15,331** | **+2.7%** | Segment Results by Reportable Segment | Segment | Segment (Loss)/Profit for Six Months Ended June 30, 2025 (HK$'000) | Segment (Loss)/Profit for Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Advertising Services | (3,910) | (2,088) | | Securities Brokerage Services | (75) | 86 | | Money Lending | 307 | (1,950) | | **Consolidated** | **(3,678)** | **(3,952)** | [Other Gains and Losses, Net](index=6&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) During the reporting period, the Group recorded a net exchange loss, contrasting with a significant gain from the deregistration of a subsidiary in the prior year Other Gains and Losses, Net | Item | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Net Exchange (Loss)/Gain | (1,355) | 2,121 | | Gain on Deregistration of a Subsidiary | – | 19,985 | | **Total** | **(1,355)** | **22,097** | [Loss Before Tax](index=6&type=section&id=Loss%20Before%20Tax) The Group's loss before tax is calculated considering factors such as depreciation, bank interest income, and finance costs Components of Loss Before Tax | Item | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 1 | 1 | | Bank Interest Income | (8) | (27) | | Finance Costs | 436 | 1,264 | [Income Tax](index=6&type=section&id=Income%20Tax) Hong Kong profits tax uses a two-tiered tax rate, while Chinese subsidiaries are taxed at 25%, with no income tax expense incurred by the Group during the reporting period - Hong Kong profits tax applies a two-tiered tax rate of **8.25% and 16.5%**, while Chinese subsidiaries are subject to a **25%** tax rate[14](index=14&type=chunk) - No income tax expense was incurred for the six months ended June 30, 2025, and 2024[15](index=15&type=chunk) [Dividends](index=6&type=section&id=Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[15](index=15&type=chunk) [Loss Per Share](index=7&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share significantly narrowed, primarily due to a substantial reduction in the loss for the period Loss Per Share Calculation Data | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (HK$'000) | (829) | (25,167) | | Weighted Average Number of Ordinary Shares ('000 shares) | 821,082 | 821,082 | | Basic and Diluted Loss Per Share (HKD) | (0.001) | (0.031) | - Share options only have a dilutive effect when the average market price during the period exceeds the adjusted exercise price[17](index=17&type=chunk) [Receivables](index=8&type=section&id=Receivables) The Group's receivables primarily stem from advertising and securities trading businesses, with advertising receivables decreasing and securities trading receivables remaining stable, as the Group maintains strict credit risk monitoring Receivables Details | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Receivables from Advertising Services (Net of Allowance) | 3,592 | 8,868 | -59.5% | | Receivables from Securities Trading Business (Net of Allowance) | 35,433 | 35,433 | 0% | | **Total Receivables** | **39,025** | **44,301** | **-11.9%** | - The Group maintains strict monitoring over outstanding receivables from securities brokerage to minimize credit risk and ensure clients' listed equity securities are sufficient to offset outstanding debts[19](index=19&type=chunk) - Receivables from cash clients are repayable on demand and bear interest at the Hong Kong prime rate plus **3%** per annum[20](index=20&type=chunk) [Investments Held for Trading](index=9&type=section&id=Investments%20Held%20for%20Trading) The Group's investments held for trading primarily consist of Hong Kong-listed equity securities, which saw an increase in fair value and are classified as Level 1 fair value hierarchy Total Investments Held for Trading | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Investments Held for Trading | 83,918 | 74,049 | +13.3% | - Investments held for trading are listed equity securities in Hong Kong, with fair value determined by market bid prices and classified as Level 1 fair value hierarchy[23](index=23&type=chunk) [Payables](index=9&type=section&id=Payables) The Group's payables primarily arise from advertising and securities trading, with advertising payables increasing, and the Group maintains an average credit period of 90 days with financial risk management policies to ensure timely settlement Payables Details | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Payables from Advertising Services | 10,609 | 8,809 | +20.4% | | Payables from Securities Trading Business (Cash Clients) | 9,828 | 9,828 | 0% | | **Total Payables** | **20,437** | **18,637** | **+9.7%** | - The average credit period for payables is **90 days**, and the Group has established financial risk management policies to ensure all payables are settled within credit terms[25](index=25&type=chunk) Business Review [Advertising and Sale of Books and Magazines](index=11&type=section&id=Advertising%20and%20Sale%20of%20Books%20and%20Magazines) Advertising business, a key revenue source, improved as COVID-19 impacts in China subsided despite challenges from the US-China trade war and internet economy, with the Group actively expanding digital media marketing and MCN businesses - Advertising business performance improved, generating approximately **HK$10.4 million** in revenue, accounting for about **65.8%** of total revenue[27](index=27&type=chunk) - The Group actively expands digital media marketing services and Multi-Channel Network (MCN) businesses to diversify revenue[27](index=27&type=chunk) [Securities Brokerage](index=11&type=section&id=Securities%20Brokerage) Due to continuous losses, the Board decided to cease securities brokerage operations and is surrendering its license to the SFC; the business, suspended since September 19, 2023, has no material impact on the Company's financials or operations - The Board has decided to cease operating the continuously loss-making securities brokerage business and is in the process of surrendering its license to the SFC[28](index=28&type=chunk) - The securities brokerage business has been suspended since **September 19, 2023**, with no material impact on the Company's financial position or operations[28](index=28&type=chunk)[29](index=29&type=chunk) - For the six months ended June 30, 2025, the securities brokerage business generated no commission, brokerage, or interest income[28](index=28&type=chunk) [Money Lending](index=12&type=section&id=Money%20Lending) Money lending, part of the Group's diversified financial services to expand revenue, generated approximately HK$5.4 million in interest income, accounting for 34.2% of total revenue, with credit risk managed through independent credit assessments, collateral checks, and monthly loan portfolio reviews - The money lending business generated approximately **HK$5.4 million** in interest income, representing about **34.2%** of the Group's total revenue[30](index=30&type=chunk) - The Group manages credit risk in its money lending business through independent credit assessments, collateral value checks, and regular credit reviews[31](index=31&type=chunk)[32](index=32&type=chunk) - As of June 30, 2025, the loan portfolio included approximately **HK$94.1 million** in secured loans and **HK$61.0 million** in unsecured loans, with annual interest rates ranging from **6.4% to 8.0%**[33](index=33&type=chunk) - The largest borrower and the top five borrowers accounted for approximately **12%** and **49%** of total loans receivable, respectively, with all top five borrowers being individuals whose loans are collateralized[33](index=33&type=chunk) Outlook and Prospects [Outlook and Prospects](index=13&type=section&id=Outlook%20and%20Prospects) Despite global economic challenges, China's economy is expected to rebound, and the Group will continue to strengthen its financial businesses, actively develop digital media marketing and MCN advertising, and explore other investment opportunities to maximize shareholder value - The global economy faces challenges, but China's economy is expected to rebound, supported by government stimulus measures and domestic consumption growth[35](index=35&type=chunk) - The Group will continue to strengthen its financial businesses and actively develop digital media marketing and MCN advertising businesses[35](index=35&type=chunk) - The Group will maintain a cautiously optimistic outlook, exploring investment opportunities that yield good sustainable returns and maximize shareholder value[37](index=37&type=chunk) Management Discussion and Analysis [Financial Review](index=14&type=section&id=Financial%20Review) Advertising services revenue grew by 25.4%, securities brokerage revenue was zero, and money lending revenue decreased, leading to an overall gross profit margin decline to 48.6%; the shift from a loss to a gain in investments held for trading was the primary reason for the 96.7% reduction in loss for the period Revenue Changes by Business Segment | Business Segment | Revenue for Six Months Ended June 30, 2025 (HK$'000) | Revenue for Six Months Ended June 30, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Advertising Services | 10,400 | 8,300 | +25.4% | | Securities Brokerage Business | 0 | 200 | -100% | | Money Lending Business | 5,400 | 6,900 | -21.7% | - The Group's overall gross profit margin decreased from **68.1% to 48.6%**, primarily due to a reduced revenue contribution from high-margin business segments[38](index=38&type=chunk) - A fair value gain of approximately **HK$8.9 million** from investments held for trading, compared to a loss of approximately **HK$35.0 million** in the prior year, was the primary reason for the **96.7%** reduction in loss for the period[38](index=38&type=chunk)[40](index=40&type=chunk) [Use of Proceeds](index=15&type=section&id=Use%20of%20Proceeds) The Group disclosed the use of proceeds from its 2015 public offering and 2022 subscription, with most funds utilized as planned, and remaining unutilized funds allocated for developing Type 4, 6, 9 regulated activities companies and expanding advertising business - Net proceeds of approximately **HK$518.27 million** from the 2015 public offering were primarily used for establishing and operating Type 1 companies, acquiring e-commerce platform companies, and developing money lending businesses, with most funds utilized[41](index=41&type=chunk)[42](index=42&type=chunk) Use of Proceeds from Public Offering | Intended Use | Net Proceeds (HK$'000) | Actual Use for Six Months Ended June 30, 2025 (HK$'000) | Unutilized Balance (HK$'000) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Establishment and Operation of Type 1 Companies | 275,000 | 275,000 | – | – | | Establishment and Operation of Type 4, 6, 9 Regulated Activities Companies | 10,000 | – | 10,000 | December 31, 2025 | | Acquisition of E-commerce Platform Development and Operation Companies | 124,000 | 124,000 | – | – | | Operation and Development of Money Lending Business | 110,000 | 110,000 | – | – | - Net proceeds of approximately **HK$47.8 million** from the 2022 subscription were intended for expanding advertising business, particularly digital media marketing and MCN services, with **HK$46.6 million** utilized as of the reporting date, and the remaining **HK$1.2 million** expected to be fully utilized by **December 31, 2025**[43](index=43&type=chunk)[44](index=44&type=chunk) [Material Acquisitions and Disposals of Subsidiaries](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries[45](index=45&type=chunk) [Material Investments](index=16&type=section&id=Material%20Investments) The Group's total investments held for trading amounted to approximately HK$83.9 million, primarily Hong Kong-listed equity securities, with an investment in China Investment and Finance Group Limited accounting for 5.9% of total assets and recording an unrealized gain; the Group will maintain a diversified investment portfolio to balance risk Total Investments Held for Trading | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investments Held for Trading | 83,900 | 74,000 | +13.4% | Details of Material Investments | Company Name | Number of Shares Held | Percentage of Total Issued Share Capital | Market Value (HK$'000) | Percentage of Total Group Assets | Fair Value Gain on Investment (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Investment and Finance Group Limited | 13,000,000 | 3.2% | 19,500 | 5.9% | 2,210 | | Other Securities | N/A | N/A | 64,418 | 19.4% | 6,651 | | **Total** | | | **83,918** | **25.3%** | **8,861** | - The Group will continue to maintain a diversified investment portfolio across various business segments, closely monitoring portfolio performance to adjust investment strategies for balancing and mitigating investment risks[49](index=49&type=chunk) [Liquidity and Financial Resources](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's daily operations are primarily funded by internal resources, with a slight decrease in total equity and a capital gearing ratio increase to 53.5%; the Group holds approximately HK$25.9 million in bank and cash balances with no assets pledged Liquidity and Financial Resources Overview | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity | 154,000 | 155,400 | -0.9% | | Non-current Liabilities | 24,800 | 25,600 | -3.1% | | Capital Gearing Ratio | 53.5% | 51.9% | +1.6% | | Bank and Cash Balances (Excluding Trust and Segregated Accounts) | 25,900 | 29,400 | -11.9% | - The Group's daily operations are primarily funded by internal resources, with no assets or bank deposits pledged to banks[50](index=50&type=chunk)[52](index=52&type=chunk) [Events After Reporting Period](index=18&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Group completed a rights issue, raising net proceeds of approximately HK$39.5 million, and its wholly-owned subsidiary, Honor Fame Group Limited, agreed to acquire sale shares of BFB Development Inc. for HK$38.22 million - Subsequent to the reporting period, the Group completed a rights issue in **July 2025**, raising net proceeds of approximately **HK$39.5 million**[53](index=53&type=chunk) - The Group's wholly-owned subsidiary, Honor Fame Group Limited, agreed on **August 22, 2025**, to acquire sale shares of BFB Development Inc. for **HK$38.22 million**[54](index=54&type=chunk)[55](index=55&type=chunk) [Foreign Currency and Treasury Policy](index=19&type=section&id=Foreign%20Currency%20and%20Treasury%20Policy) Most of the Group's business transactions, assets, and liabilities are denominated in HKD, USD, or RMB; the treasury policy is to manage foreign exchange risk when financially significant, with no hedging or speculative activities during the period - Most of the Group's business transactions, assets, and liabilities are denominated in **HKD, USD, or RMB**[56](index=56&type=chunk) - The Group's treasury policy is to manage foreign exchange risk when it significantly impacts financials, with no hedging or speculative activities undertaken during the period[56](index=56&type=chunk) [Employees](index=19&type=section&id=Employees) As of June 30, 2025, the Group had 48 employees, with remuneration and benefits determined based on market conditions and individual performance Number of Employees | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 48 | 55 | -7 | - Salaries, bonuses, and benefits are determined based on market conditions and individual employee performance[57](index=57&type=chunk) Corporate Governance and Other Information [Directors' Interests in Shares](index=19&type=section&id=Directors%27%20Interests%20in%20Shares) As of June 30, 2025, certain directors held long positions in the Company's shares and share options, with Mr. Li Wei holding 5.17% of shares and related share options Directors' Interests in Shares | Director's Name | Nature of Interest | Number of Shares Held | Number of Underlying Shares Held via Share Options | Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Li Wei | Beneficial Owner | 30,778,750 | 7,300,000 | 5.17% | | Luo Zhihong | Beneficial Owner | – | 3,180,000 | 0.43% | - As of June 30, 2025, no director held any long or short positions in the Company's shares, underlying shares, or debentures, other than those disclosed[60](index=60&type=chunk) [Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares of the Company](index=20&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, the register of substantial shareholders indicated Yongrong (Hong Kong) Asset Management held a long position in the Company's shares - **Yongrong (Hong Kong) Asset Management** is a substantial shareholder, holding a long position in the Company's shares[63](index=63&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[64](index=64&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, adopting a more flexible approach to Board meeting notice periods for more efficient decision-making - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, but adopted a more flexible approach regarding Board meeting notice periods (Code Provisions C.5.3 and C.5.8) to ensure more efficient and prompt management decisions[65](index=65&type=chunk) [Remuneration Committee](index=21&type=section&id=Remuneration%20Committee) The Remuneration Committee comprises three independent non-executive directors, with Mr. Luo Zhihong serving as Chairman - The Remuneration Committee consists of **three independent non-executive directors**, with **Mr. Luo Zhihong** as Chairman[67](index=67&type=chunk) [Nomination Committee](index=21&type=section&id=Nomination%20Committee) The Nomination Committee comprises three independent non-executive directors, with Ms. Fang Ying serving as Chairperson - The Nomination Committee consists of **three independent non-executive directors**, with **Ms. Fang Ying** as Chairperson[68](index=68&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr. Luo Zhihong as Chairman, has reviewed the Group's accounting principles, practices, and financial reporting matters - The Audit Committee consists of **three independent non-executive directors**, with **Mr. Luo Zhihong** as Chairman, and has reviewed the Group's accounting principles, practices, and financial reporting matters[69](index=69&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance - The Company has adopted a code for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance[70](index=70&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises four executive directors and three independent non-executive directors, with Mr. Li Liang serving as Chairman - The Board of Directors consists of **four executive directors** (Zhou Hongtao, Li Liang, Li Wei, Li Zhen) and **three independent non-executive directors** (Luo Zhihong, Fang Ying, Guo Hui), with **Mr. Li Liang** serving as Chairman[71](index=71&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 CATHAY GROUP HOLDINGS INC. 華夏集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1981） 截至2025年6月30日止六個月 中期業績公告 華夏集團控股有限公司（「本公司」，連同其附屬公司及綜合聯屬實體統稱「本集 團」）董事會欣然公佈本集團截至2025年6月30日止六個月（「報告期」）的未經審核 中期業績。該中期業績已經由本公司審核委員會及本公司核數師德勤 • 關黃陳方 會計師行審閱。 財務摘要 截至6月30日止六個月 1 下表載列我們的經調整淨利潤與期内利潤（按照香港財務報告準則會計準則計算 及呈列的最直接可比較財務計量）的調節。 截至6月30日止六個月 | | 2025年 | 2024年 | | --- | --- | --- | | | （未經審核）（未經審核） | | | | （人民幣 | （人民幣 | | | 千元） | 千元） | | 期內利潤 | ...